what would happen if...

Tongs of Destiny

Tongs of Destiny

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If you have your savings in an investment house, like EasyEquities. What would happen to all your money if they went tits up and just closed their doors overnight etc?
Does it make a difference if the shares you bought are all ETF ones overseas?
 
I asked the same question before on this forum and was told that as long as you have proof of e.g. your shareholding, it will be OK.

Not sure how to get that proof, though.
 
Wrath of Khan said:
If you have your savings in an investment house, like EasyEquities. What would happen to all your money if they went tits up and just closed their doors overnight etc?
Does it make a difference if the shares you bought are all ETF ones overseas?
Click to expand...

Don't you get monthly or quarterly statements which could be used as proof?
 
I'm personally a fan of this what if business.

If you what if everything you will never get out of bed & soon want to end it all.
 
Bill Clitnon said:
A quick Google search shows that EasyEquities apparently offers NO investor protection. https://brokerchooser.com/broker-reviews/easyequities-review

View attachment 1698375

Safest would be to get hold of them yourself and confirm with them how it works.
Click to expand...
You didn't Google very well

support.easyequities.co.za

How your assets are protected with EasyEquities

Any whole shares or ETFs (whole securities) that you have invested in, and any cash in your EasyEquities account that is not yet invested, is protected in what is called an insolvency event. This is because all whole securities and uninvested c...
support.easyequities.co.za support.easyequities.co.za
 
Speedster said:
You didn't Google very well

support.easyequities.co.za

How your assets are protected with EasyEquities

Any whole shares or ETFs (whole securities) that you have invested in, and any cash in your EasyEquities account that is not yet invested, is protected in what is called an insolvency event. This is because all whole securities and uninvested c...
support.easyequities.co.za support.easyequities.co.za
Click to expand...
Touché. I just shared the first result I found. Couldn't be bothered to do more. Brokerchooser needs to sort out their **** then.
 
When you buy shares you are supposed to get a contract note for the transaction. This is usually supplied the day after the transaction has taken place and is your proof of ownership of the shares.

It is possible to move owned stock between brokers, so theoretically speaking if one broker closes their doors then you can register at another broker and request for the shares to be moved across to the new broker.
Any capital that you have in your account will most likely be lost if insolvency is involved and there is no protection plan present.
 
Is there a practical example where this has happened before and people managed to easily gain access to their shares? I can imagine it must still be a nightmare.
 
The reason I ask is simple.

1) Take Zimbabwe back in the day, I don't even know if they had a stock market, but lets say they did. You then invest in USD and buy the S&P500 ETF through a broker in Zimbabwe. Then civil war broke out and everything in the country is like it is today, a dogs nuts and worth nothing. What happened to all your investments?

2) South Africa... we all know things in this country are a tinder box waiting to explode, hence my concern.
 
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