When investing in bonds, shares, Malta Government Stocks or funds, most investors focus on what to invest in. However, how those investments are held is an equally important decision.
At Calamatta Cuschieri Moneybase, eligible investments can be held either under our nominee service or in certificated form. While both methods allow clients to enjoy the economic benefits of ownership, they differ in terms of legal ownership, administration, transaction processing, corporate actions, and costs.
Understanding these differences helps investors decide the option that best suits their needs.
What is nominee holding?
When investments are held under nominee, Calamatta Cuschieri Moneybase is the registered holder of the securities, while the client remains the beneficial owner.
This means the client retains all the economic benefits attached to the investment, including interest, dividends, and redemption proceeds. The nominee, acting on the client’s behalf, administers the holdings and facilitates transactions and corporate actions, reducing much of the administrative burden associated with holding securities directly.
What is certificated holding?
When investments are held in certificated form, the client is registered directly as the holder of the securities. This gives the same beneficial ownership as a nominee holding, but places certain administrative responsibilities, such as completing subscription or corporate action forms, directly with the client rather than simply sending instructions via the platform.
Pricing and process
The method by which investments are held influences more than convenience. It can also affect dealing costs and transaction processing.
For Maltese equities and corporate bonds, certificated orders normally do not require any additional action from the client at the point of placing the order, but they carry a higher trading fee than the equivalent nominee order.
Processing timelines also differ. Transactions executed for securities held under nominee are processed automatically upon execution. Certificated orders, by contrast, are processed following market closure.
For Malta Government Stock subscriptions, certificated holders are required to complete and submit a physical application form. Similarly, corporate actions such as exchanges, rollovers and preference allocations generally require certificated holders to complete and submit additional documentation through an intermediary.
Under the nominee arrangement, both of these actions are handled through a single instruction submitted via the Moneybase platform.
Key differences
A consolidated portfolio
Nominee holdings are consolidated into a single portfolio, viewable and manageable through the Calamatta Cuschieri Moneybase account. This provides clients with a comprehensive overview of eligible investments from one location, simplifying portfolio monitoring and administration.
With certificated holdings, each investment is registered separately with its respective registrar. Investors therefore receive separate correspondence and maintain individual records for each holding, an approach some investors prefer because it provides direct registration in their own name.
Simpler transactions
As nominee-held securities are already administered within the Moneybase platform, selling investments, participating in exchange offers or subscribing to Malta Government Stocks generally involves fewer administrative steps.
Equivalent transactions involving certificated holdings usually require additional forms to be completed and submitted before they can be processed.
Faster access to investment income
For nominee-held investments, interest payments, dividends and redemption proceeds are credited directly to the client’s nominated Calamatta Cuschieri Moneybase account.
This enables clients to access their funds more quickly, whether to reinvest, purchase additional investments, transfer funds elsewhere or spend using their Moneybase Mastercard.
For certificated holdings, distributions are generally paid directly by the issuer or registrar.
Easier administration
Changes to personal information, settlement instructions or powers of attorney are generally simpler under nominee, as they can typically be managed through a single relationship with Calamatta Cuschieri Moneybase.
For certificated holdings, similar updates usually need to be completed separately with each registrar, requiring additional coordination where multiple investments are held.
Corporate actions
Corporate actions, including bond exchanges, rollovers, early redemptions and preference allocations, are generally more straightforward under nominee.
Calamatta Cuschieri Moneybase communicates the relevant information, collects client instructions and facilitates participation electronically. ions
As nominee-held securities are already administered within the Moneybase platform, selling investments, participating in exchange offers or subscribing to Malta Government Stocks generally involves fewer administrative steps.
Equivalent transactions involving certificated holdings usually require additional forms to be completed and submitted before they can be processed.
Security of holdings
Holding investments electronically under nominee removes the need to safeguard physical certificates, reducing the risk of certificates being misplaced, damaged or requiring replacement.
By contrast, investors holding securities in certificated form are responsible for retaining their physical documentation. While this carries additional responsibility, some investors value having direct registration and a tangible record of ownership.
Choosing the right option
Both nominee and certificated holdings enable investors to benefit economically from their investments, but they offer different administrative experiences.
Clients who value convenience, digital administration, streamlined corporate actions and efficient portfolio management often favour nominee holdings. Those who prefer to hold securities directly in their own name may choose certificated holdings, accepting the additional administrative responsibilities that accompany direct registration.
When opening a new investment account or subscribing to eligible investments through the Moneybase platform, selecting nominee holding together with a Moneybase settlement account offers a streamlined way to manage investments while providing flexibility for future investment opportunities.
Professional guidance
If you’d prefer to speak to someone before investing, our Financial Advisory team is here to guide you. Book an appointment with one of our advisors to discuss your goals and build a plan that works for you.
You can visit us at our branches in Birkirkara, Mosta, Sliema, or Fgura or call on +356 25 688 688 to schedule an appointment with a financial advisor.
All investment services are brought to you by Calamatta Cuschieri Investment Services Ltd (C13729), which is licensed by the MFSA to carry out investment services business in terms of the Investment Services Act (Cap. 370). The company is a subsidiary of Calamatta Cuschieri Moneybase plc and is registered at Level 0, Ewropa Business Centre, Dun Karm Street, Birkirkara BKR 9034, Malta.
