While this is bad for business, this has also created a new opportunity for people looking at building an investment portfolio. It has been granted a robo-advice exemption by the Financial Markets Authority, so may in the future provide users with personalised financial advice online. However, Sharesies (beta) got a fantastic user interface and make investing as easy as shopping online. This would result in the platform continuing in operation as usual, apart from the platform having new owners. Custodians hold investors’ money in a dedicated entity that’s seperate from the actual business of the Custodian. Many Fund Managers also outsource administrative functions such as fund accounting, pricing, and the fund’s registry to other providers. Sharesies have just celebrated their first birthday and up until this point I have resisted having a play around with their product. According to their website, Sharesies has six co-founders. Using the card option may have an additional card fee. One of the major signs, even including all around the world, is that the majority of stocks have significantly dropped in value since Covid-19 first hit. You can read more about Sharesies’ custodial arrangements here. Recent examples of listed companies going bust in NZ are Pumpkin Patch, Wynyard Group, and CBL Insurance. InvestNow’s custodian is Adminis Custodial Nominees Limited, run by a specialist Wellington based investment administration company, Adminis Limited. Within 24 hours, you should see your investment show in your dashboard. Sharesies looks after your money and your investments in what is called a custodial system. Managed funds, Exchange traded funds (ETFs) and Companies. Could this service run away with my money? But these are topics I hope to write more about in a future article. The Fund Manager then tells the Custodian what to do with the money, for example, which shares and bonds to buy or sell in order to make up the assets of the fund. Do the provider’s management have experience in the financial services industry (check their LinkedIn profiles)? Get in touch. This would be the probable scenario if you hold the Vanguard funds on InvestNow, given most investors won’t meet the $500,000 AUD requirement to hold this fund in their own name. You can either buy a share (or a fraction of a share) directly, or a fund. Get $5 cash with my Sharesies … Right now investors’ funds are locked up as liquidation procedures are carried out, with investors facing a 7-15% loss in their investment. Accordingly we would transfer the custodial services to a new custodian. Enter the amount you wish to withdraw, your bank details and click Withdraw. It's quick to sign up. Ready to sign up? This reflects that the custodial account they hold assets through (Adminis Custodial Nominees Limited) is a completely separate entity to their actual business. You can set up a Kids Account for someone under 18, but it will need to be linked to an adult’s account. In comes Sharesies, the perfect platform to help anyone build an investment portfolio without a minimum buy-in, or all the complicated jargon. Sharesies is a company that aims to create the most financially empowered generation through its products. Yes, Sharesies is very safe to use. This system is scrutinised every year, so there are minimal chances of risks. The investments you buy through these platforms are not held in your name, nor are they owned by the platform. They can’t do anything with your money or investments without you telling them to. Read reviews of the service in the news, on blogs, or on social media. When you invest in a fund, your money goes straight to the Fund Manager’s Custodian. We’ve gone and researched Sharesies and created this solid article for you! Custodians are required to be independently audited annually, and must send the auditor’s report to the Financial Markets Authority (FMA). Subscribe to get new Money King NZ articles in your inbox. How was Halifax unsafe? If anything were to happen to Sharesies Limited, your money should still be safe because it’s held separately in Sharesies Nominee Limited and the NZX Depository. I've got their invitation recently and checked out their offerings. They’ve improved access to investing by reducing cost, removing jargon, and making investing fun. Sharesies makes it easy to start investing—no jargon, no minimum buy-in, and all online. Your account is temporarily locked because we need some more information from you. Sharesies is a Wellington-based company with 28 staff, which creates a product which helps young people begin their investment journeys. 🍍 | At Sharesies, we want someone with $5 to have the same investment opportunities as someone with $500,000. To get access to your money, your Fund Platform or Fund Manager would switch their custodial services to a new Custodian, after which business would carry on as usual. Therefore it’s important to diversify your investment portfolio, so your whole portfolio isn’t wiped out if your company goes down the toilet. Below that it is free. Sharesies is rolling out their trial run (a.k.a beta) investments options couple weeks ago. How long to top up your Sharesies Wallet. Check the provider’s social media accounts. We have established that Custodians hold your money in the case of both Fund Platforms and Fund Managers. Sharesies | 18,678 followers on LinkedIn. It will then ask the amount you want to invest, once you have added the amount you wish to invest, click ‘Invest Now’. Sharesies is highly regulated. Action required! Sharesies also claims to give the same investment opportunities from someone who invests $5, as someone who invests $500,000. [this] demonstrates that you can ultimately get ownership and take control of your own assets and investments. Get new investing articles in your inbox. Adminis uses PwC, and Sharesies uses KPMG to perform their audits. If you have less than $50, it’s free. Cash deposits, and investments in non-listed funds are held by custodian Sharesies Nominees Limited, while investments in listed funds and shares are held by NZX owned New Zealand Depository Nominee Limited. No matter where you put your money, whether it be at the bank, in shares, under your mattress, or in the casino, there is always going to be at least a little bit of risk – and no way to fully eliminate the risk. I also haven’t covered how international investment providers like Vanguard or Hatch handle investors’ money. The content of this article is based on my personal opinion and should not be considered financial advice. If the provider is offering something too good to be true, it probably is. Then there is also information about the potential fees that come with the fund or company charges. I'm sure Sharesies are pretty safe. Sharesies actually let you invest as little $5. Yes, Sharesies is very safe to use. Cash deposits, and investments in non-listed funds are held by custodian Sharesies Nominees Limited, while investments in listed funds and shares are held by NZX owned New Zealand Depository Nominee Limited. Please get in touch with us so you can get back to investing. What if the Custodian itself were to go out of business? If you’re investing in individual companies, that means you should buy multiple companies from different industries and different countries. Instead they are held in the name of a Custodian, but on your behalf, with you as the beneficial owner of the investment. 4 things to know about investing in Equity Crowdfunding, ← What I’ve been investing in – October 2019, Smartshares vs Simplicity vs AMP vs Kernel – NZ Share Index Fund shootout →, What I’ve been investing in – February 2020, Rights issues, share buybacks, and acquisitions – 5 things to know about Corporate Actions, Property vs Shares – The pros and cons of buying residential property, Due diligence on shares – How I evaluate companies before investing, How to invest in Australian shares from New Zealand, What I’ve been investing in – January 2020. We treasure our customers and if you think that any of our content has issues that need addressing, please reach out to us and let us know. They have a custodial service that holds all of their customers money and non-listed funds which is separate from Sharesies Limited. Brooke Roberts, Sonya Williams, Richard Clark, Martyn Smith, Leighton Roberts and Ben Crotty. Sharesies $1million Media Release. Log in Sign up. It is advised to do thorough research before investing in your chosen fund or company, as they may fall into different risk categories. It makes me want to keep putting money into it. This is a legal requirement and the system is audited every year. The information should never be used without first assessing your own personal and financial situation, and conducting your own research. Brooke got together with her team of co-founders and decided to create a platform that was as easy as online shopping, and was fun. In addition, they carry out activities such as marketing the platform, onboarding new customers, supporting customers, and maintaining the platform. The audit includes assessing whether the custodians have the right procedures and controls in place to accurately process transactions, keep records, and safeguard investors’ money. Sharesies' purpose is to financially empower the next generation by giving someone with $5 the same investment opportunities as someone with $500,000. You’ll need to be at least 16 years of age and have an NZ bank account. Thanks for visiting Brownie Points, a New Zealand owned and operated website, Sharesies Review 2020: Easy NZ Investment App, 30 Sweet Things to do for Your Girlfriend, Transaction fees when users buy or sell companies, Rebates fund providers give for having their funds listed on Sharesies, Interest earned from the money in users wallets. Therefore this money can’t be used by the platform to run their business. It appears that leading up to the collapse, Halifax were struggling to pay their bills, and were able to access clients’ money, subsequently using the funds to cover their own operating expenses. If the custodian cannot transfer your assets to you, then this should be an alarm bell. 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