Protect your rights, act now!

This is a once-in-a-generation opportunity to regain the rights and protections that you have lost as a result of the nominee account system. I urge you to act now by raising this issue at AGMs and writing to your MP, as suggested below.

Probably the most important ShareSoc campaign is the Shareholder Rights campaign, launched in October 2014 to gain full rights for ALL shareholders.

Individual shareholder rights have been eroded, particularly by the nominee account mechanism and the way that platforms and brokers fail to provide a good service to individual investors. Often, individual investors are not informed when a general meeting is going to happen, and do not receive circulars, voting forms and annual reports. And many platforms make it difficult and expensive for investors to get this information.

By having shares registered in nominee accounts, rather than in shareholders’ own names, they are at risk in the event of a broker insolvency and subject to an FSCS compensation limit of £50,000. Any loss above this is not covered. The Beaufort Scandal has highlighted the way administrators can dip into investors’ funds to pay their costs and fees first. Some Beaufort investors may be facing a loss of up to 40%

Help may be at hand in the form of the Shareholder Rights Directive. SRD II has a clear intent that the end investor should be identified on the company register, including their email address, and should be entitled to receive company information and annual reports. See https://ec.europa.eu/info/law/better-regulation/initiatives/ares-2018-1944240_en for details.

UK law is at odds with the EU Directive. UK law defines a shareholder as the nominee and not the end investor (ie the individual investor like you or me). The UK law must be changed.

However, to date, the UK Government has been resistant to changing the UK legislation so as to meet the intent of the EU Directive.

We now have a once in a decade opportunity to get this problem resolved. We must not let the opportunity slip. We will be working with UKSA (and others) to make sure that BEIS and the Government make the right decision.

As a first step we have written to BEIS: click here for a copy of our joint letter from UKSA and ShareSoc to BEIS about SRD II.

Our second step is to ask members to write to their MP requesting that Government implement the Shareholder Rights Directive’s clear intent that the end investor should be identified on the company register. You can find details of your MP’s name and email address at this webpage www.parliament.uk/mps-lords-and-offices/mps/

The suggested wording of a letter/email to your MP is as follows:

Dear xxxx,

Please can you ask Greg Clark, the Secretary of State for Business, Energy and Industrial Strategy to implement the Shareholder Rights Directive’s clear intent that the end investor should be identified on the company register. This should include their email address, and they should be entitled to receive company information and annual reports, and to vote at company general meetings. See https://ec.europa.eu/info/law/better-regulation/initiatives/ares-2018-1944240_en for details.

The UK law is at odds with the EU Directive. UK law defines a shareholder as the nominee (when shares are held in a nominee account) and not the end investor (ie. the individual investor like you or me). Note that the accounts offered by most UK brokerages and platforms place the account holders shares in a nominee account. At present, this is mandatory for ISAs and SIPPs. The UK law must be changed.

However to date, the UK Government and BEIS has been resistant to changing the UK legislation so as to meet the intent of the EU Directive.

We now have a once in a decade opportunity to get this problem resolved. We must not let the opportunity slip. Your help in making this happen is most appreciated.

Your sincerely

[Your name]

A Microsoft Word copy of this letter template is available here: ShareSoc – MP Letter Final

Please send a letter or email, along these lines to your MP. It is critical that you do so.

Our third step is to ask a co-ordinated series of questions at company AGMs. All companies should want to communicate and better engage with their shareholders so it will be difficult for them not to agree with our goal. The suggested question is as follows:

Question for the AGM

Please can you tell me what percentage of your shares are held by individual investors?
And do you know what percentage of these individuals have voted at this AGM by proxy?
Can you tell me what percentage of your individual shareholders do not get to see your annual report, and do not get notification of the AGM or voting forms?

Will you support me and ShareSoc, the UK Individual Shareholders Society, in lobbying the UK government to put the end investor’s name and email address on the shareholder register, so that you can more easily communicate with your shareholders?

The EU Shareholder Rights Directive has a clear intent that the end investor should be identified on the shareholder register and not just the Nominee. Will you lobby the UK government to implement the clear intent of the EU Shareholder Rights Directive and hence protect the rights of Individual Shareholders?

To achieve maximum effect, email the company secretary before the AGM with a copy of your question. This will ensure they prepare a considered response at the AGM. Please copy your email to info@sharesoc.org where we will keep a register of companies questioned.

Other steps in our campaign will be further meetings with BEIS, Government, FCA, etc; publicity via media; and contacting platforms and registrars to ask them to voluntarily agree to improve their systems, processes and service to individual investors.

Please note that we will be writing to you again shortly, asking you to write again to your MP, asking them to amend the Special Administration Rules, which currently allow your assets to be raided to pay for Administrators’ costs. Your support for both these initiatives is much appreciated. They are critically important to defend your interests.

Yours sincerely,

Mark Northway
Chairman

Post Date: May 27, 2018

Group description:	SIGnet Taunton is a new group with around 10 keen members at present, with a range of investment styles and experience. We welcome new members.
Meeting Type/Venue:	In person meetings at a golf club near to the centre of Taunton.
Meeting Frequency/Timing:	We meet on the first Monday of every month at a golf club near to the centre of Taunton, 11am until 3pm with a lunch break.

Group description:	An online group for those who are new to investing, or have only been investing for a few years. Including topics such as: – What is a share or a bond, why and how to buy them. – Comparing funds, unit trusts, Investment trusts and exchange traded funds. – Portfolio management and diversification. – ISAs, pensions, SIPPS and how to save tax. – How terms such as PE ratio and dividend yield are used to value a share. – How to use technical analysis or charting.
Meeting Type/Venue:	Online using Zoom.
Meeting Frequency/Timing:	Meetings are usually held on the last Monday of the month at 7:00pm.

Group description:	An online group for those who already have some experience in investing. Covering topics such as finding companies to invest in, financial statements and ratios, valuation / margin of safety, analysis of companies and investment trusts and exchange traded funds.
Meeting Type/Venue:	Online using Zoom.
Meeting Frequency/Timing:	Meetings are usually held on the last Wednesday of the month at 7:00pm.

Group description:	The Equity Income Group welcomes investors of all levels of experience, from beginners to advanced. The focus of meetings is on dividend paying Investment Trusts, though there is also discussion around individual shares.
Meeting Type/Venue:	Meetings are held online.
Meeting Frequency/Timing:	Meetings are held every 6 weeks on a weekday between 7 and 8:30pm.

Group description:	The Group welcomes investors of all levels of experience, from beginners to advanced. The focus of meetings is on all types of income generating financial instruments, from stocks through Trusts and Funds and ETFs to retail bonds. Meetings involve presentations from members, who are also expected to lead discussions from time to time, as well as discussions on what has been bought and sold since the last meeting.
Meeting Type/Venue:	Meetings are in-person in a venue in Central London.
Meeting Frequency/Timing:	Meetings are usually held on the last Thursday of every other month, starting with an informal lunch around 1pm followed by discussions until around 5pm.

Protect your rights, act now!

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Group description:	A welcoming group open to all types of investors. Typical meeting content is to have a deep dive presentation on a topic selected by the participants and a session on buy/ sell/ key lessons learnt last month.
Meeting Type/Venue:	In person at a friendly pub close to Piccadilly Circus
Meeting Frequency/Timing:	Monthly during the evening on the first Wednesday of the month.

Group description:	Our group is a broad church that contains investors of varying experience. Our members’ backgrounds are diverse and include corporate banking, engineering, teaching and the leisure industry. We generally pick a discussion topic for every meeting, e.g. housebuilders or the defence industry, and members are invited to research and discuss different aspects or companies within that industry. We also discuss stocks and investment trusts that we have bought, sold or are interested in and the reasons behind our decisions, and try to make sense of the ever changing investment environment. Discussions are robust and challenging but we are a friendly and approachable group who welcome investors of all levels – we just ask that you contribute, at whatever level you can.
Meeting Type/Venue:	Our meetings are held in a private room at a nice pub near to South Ealing tube station (Piccadilly Line), not far from Ealing Broadway (District, Central and Elizabeth Line).
Meeting Frequency/Timing:	We meet every 2 months, usually on a Wednesday morning at 11am.

Group description:	All levels of experience welcome. A typical meeting agenda includes: – Macro Environment – Trades: Members review existing positions and identify securities with promising TA entry patterns or setups and with suitable risk/reward. Any security, long, short, futures, options may be considered. The convener takes actual positions in trades and maintains his own detailed ledger, accurately measuring performance of individual securities and cumulative activity. Members are notified by e-mail prior to the entries or exits that are decided upon. Following each meeting an updated copy of the ledger is circulated together with the next meeting agenda. Members may wish to maintain similar ledgers of their own but there is no obligation to do so. – Technical Analysis: Techniques and systems used in trades. Members can request discussion of particular aspects of TA.
Meeting Type/Venue:	Online via Zoom
Meeting Frequency/Timing:	The first Tuesday of every month from 7 to 9pm

Group description:	Open to all investors / people with an interest in investing. Typical meeting will involve members talking about recent purchases, successes, failures and possible future purchases. Also with occasional visiting speakers or members making presentations on a topic of interest.
Meeting Type/Venue:	We aim to meet on the last Tuesday of each month in a private room at a pub in Playhatch. Start time 7pm with members encouraged to meet up around 6pm for a bite to eat / drink before hand, if their diaries allow.
Meeting Frequency/Timing:	7pm on the last Tuesday of the month. Meetings likely to last about two hours but with informal ‘overspill’ before / after.

Protect your rights, act now!

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