Business risk & share ownership


I am concerned about your corporate risk. I understand the risk of individual investments but what is the risk that your firm will go under and how does that affect my investments made through you. I am currently invested and am thinking of putting another more in but am concerned about having too many eggs in the one basket. - Submitted by John


Hi John,

This is a good question. All clients in the InvestSMART PMAs are the legal owner of the underlying assets. So all of the holdings you see in your InvestSMART account are registered in your or your SMSFs name on CHESS. Every InvestSMART PMA has its own HIN (holder identification number) just like if you were to open a share trading account with a broker like Commsec or NABTrade etc.

In the case of InvestSMART not existing tomorrow, you would be able to easily arrange for the transfer of the holdings in your account out to a brokerage account of your choice.


Mitchell Sneddon


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Mitchell Sneddon
Mitchell Sneddon
Head of Portfolio Services