Replacement for Campbell O’Connor

Discussion in 'Investments' started by Pieface, 6 Apr 2019.

  1. Pieface

    Pieface Registered User

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    Hi,
    I have a nominee account with Campbell O’Connor which I am charged €40 annually as it holds 2 US stocks. One of the US stocks is from an Employee share scheme and each year when the stocks mature I get them transferred to this nominee account. I am charged €50 each time the transfer is made. So my total annual charge is €90. I read Cantor Fitzgerald‘s charges and I don’t understand them. Please could you recommend stockbrokers that I move my 2 stocks to, preferably with lower costs but reasonably safe too. Thanks.
     
  2. huskerdu

    huskerdu Frequent Poster

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    I’m in the same boat. I moved from cantor Fitzgerald to Campbell OConnor a year ago to avoid the fees. Similar situation as the OP. One stock which was a ESOP and which I am keeping in the medium term.
     
  3. Pieface

    Pieface Registered User

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    The account I have with Campbell O’Connor is a Safe Custody Account. I said Nominee Account in my opening post. Not sure if it is the same thing so I thought I’d just more specific.
     
  4. Gordon Gekko

    Gordon Gekko Frequent Poster

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    I’m guessing that their business wasn’t viable and that they were just hanging on to get their stock exchange cash.

    Their client base seems largely to have consisted of “squatters” with an aversion to paying fees.
     
    MrEarl likes this.
  5. Laramie

    Laramie Frequent Poster

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    Which Irish stockbroker has the lowest fees at the moment? Do any of them still deal with share certificates?
     
  6. Tintagel

    Tintagel Frequent Poster

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    Last edited: 13 Apr 2019 at 6:33 AM
  7. Zenith63

    Zenith63 Frequent Poster

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    Last edited: 14 Apr 2019 at 10:23 AM
    I've been looking for a replacement for Campbell O'Connor myself. I came across this table that DeGiro have done up of transaction fees - https://www.degiro.ie/fees/compare-brokers/ - it seems to be accurate and has most of the brokers you'd probably consider as an Irish investor. Short answer is that DeGiro are very significantly cheaper than the others out there, and I just noticed that they also give you one commission free ETF trade per month, which is quite neat if you just wanted to build up holdings in a small pool of ETFs.

    Having said that, if you were still with Campbell O'Connor the chances are you weren't there for the cheap fees, you were there because they'd let you trade in certificated form or have a CREST personal account, neither of which DeGiro do - they are pure online 'nominee account' style brokers. Maybe we could figure out which brokers offer CREST personal accounts and share here for others in the same quandary?

    • DeGiro - No CREST personal accounts or physical certificates. All shares held in a separate entity, unclear how that entity holds the shares (pooled in a CREST account in the name of the DeGiro separate entity presumably)
    • Davy - Website is a little unclear. Shares are held in a separate entity which uses CREST to hold shares, with one CREST account per client. However these don't appear to be personal CREST accounts, so your name will not appear on the share register of companies and communication from the companies will presumably not come directly to you. "Our nominee company is a member of CREST and its name appears on the share registers for these assets. Our nominee company operates individually designated CREST accounts for all clients who hold CREST eligible securities through Davy. This means that there are separate accounts within CREST for each Davy client. Client accounts are segregated from each other as well as from those of the firm."
    • Goodbody - No clear statement on website, but there are CREST forms available to transfer your shares to their "Goodbody Nominees" CREST company, so looks like they use CREST to hold shares but their name goes on the share register, so again a form of nominee account.
    • InteractiveInvestor - No mention of CREST personal accounts either, appears to be a separate entity that holds the shares in a CREST account in their name
    • Cantor Fitzgerald - There are a number of mentions of CREST personal accounts on their site as well as a form for creating one, so looks good
    • Merrion Capital - No mention of CREST personal accounts on their site, but their share transfer form is pre-filled to a CREST nominee entity, so looks like this is a pooled nominee account similar to many of the brokers above.

    Also worth considering what impact Brexit may have on CREST, which while being owned by Euroclear (a Belgian company) is a London based entity. From the Euroclear site -
    "Euroclear UK & Ireland is pleased to confirm that the European Securities and Markets Authority (ESMA) has recognised Euroclear UK & Ireland as a third country CSD in accordance with Article 25 of the EU CSD Regulation.

    This ensures that Euroclear UK & Ireland will be able to continue its Irish securities settlement services after March 2019 in a no-deal Brexit scenario. Euroclear UK & Ireland's recognition will apply from 30 March 2019 to 30 March 2021, by which time it is expected that the Irish securities market will have migrated to Euroclear Bank.

    Euroclear UK & Ireland is working with the European Central Bank and the Central Bank of Ireland regarding continued euro settlement services in a no-deal Brexit scenario and will update clients in due course."
     
    Last edited: 14 Apr 2019 at 10:23 AM
  8. Tintagel

    Tintagel Frequent Poster

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    Also...I purchase shares that pay high dividends. How do online brokers deal with these dividends if paid in to a nominee account and is there a charge for dealing with dividends.
     
  9. SoylentGreen

    SoylentGreen Frequent Poster

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    I am peed off with Campbell O'Connor to say the least. I cannot trade at the moment because they won't accept any more trades and I can only sell this week.
    Can someone recommend an online broker. Looking at Interactive Investors at the moment. www.iii.co.uk
     
  10. Zenith63

    Zenith63 Frequent Poster

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    I got a reply from CREST/Euroclear which clarifies this setup that Davy appear to be using, in short your shares are held in separate CREST accounts, but they're all in the name of the nominee company, not your own name -
    "If firms are not willing to offer you Personal Membership then please note that in the coming months (at the least by the end of the year), firms subject to new CSDR regulations, will be obliged to offer you account segregation, should you wish. This may not be in the form of the Personal Member you have now, whereby you receive your own CREST participant ID, and your name appears on the legal register. It is more likely that firms will offer this segregation as a sub-account ('Member Account') in CREST. In this model the name of the stockbroker (or nominee company) would appear on the legal register, but your shares would be segregated from those of other underlying clients of the stockbroker/nominee in CREST."

    In summary, Cantor Fitzgerald are the only brokers in Ireland I found that offer Personal Member CREST accounts.
     
  11. IsleOfMan

    IsleOfMan Frequent Poster

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    Is CREST hugely important?
     
  12. Gordon Gekko

    Gordon Gekko Frequent Poster

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    Everyone should look after their teeth
     
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  13. Zenith63

    Zenith63 Frequent Poster

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    CREST is the digital equivalent of holding physical share certificates yourself, where you are the named owner of the shares and are listed as a share holder on the register of the companies you invest in.

    The other alternative is where the broker puts their name on the share register, and keeps a record of which shares belong to whom etc. There was a case a few years back where a stockbroker went out of business and the proceeds from the sale of client funds was used to pay creditors.

    If you’re trading or just holding for a short period of time or only have a small amount invested then nominee makes life easier and cheaper for you. If you’re buying to hold long term then personally I prefer the security of having the shares in your own name. The latter was what Campbell O’Connor were known for, so for people leaving them CREST tends to be a common theme.
     
  14. Opus2018

    Opus2018 Registered User

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    40
    Hi all,

    Just FYI - Campbell and O'Connor are closing down on July 1st apparently. I signed on to DeGiro but am a little unsure about the security side of things as I'd much prefer to have the share certificates in my hand. Can anyone suggest a stockbroker where I can still receive the share certificates?

    Best,

    Opus 2018