How are my shares protected by Superhero?


Superhero Team

August 2nd 2021 3 minute read

Superhero has been built to ensure that our customers and their assets are protected. It can be difficult to understand the difference between different acronyms and understand what they actually mean for your shares so we’ve explained a few of these below. If you still have questions our team is available on live chat to support you.

What is CHESS sponsorship? 

The Clearing House Electronic Subregister System (CHESS) is the computer system used by the Australian Securities Exchange (ASX) to manage the settlement of trades and record share holdings. 

Superhero Securities holds an Institutional HIN on CHESS, which holds the assets of Superhero customers on the CHESS system under a custody structure. 

How does a custody structure work? Are my shares at risk?

In a custody structure, assets are held on your behalf by a custodian (e.g. Superhero NSecurities) that operates under an Australian Financial Services Licence (AFSL). Superhero is authorised under its AFSL to provide custody services to its customers.

A custodian does not acquire a beneficial or proprietary interest in your investments, or the income and rights attached to your investments. For clarity, beneficial ownership means that you, the owner of the shares, get the direct benefit from the shares.

Under our custody structure, you are the full beneficial owner of your shares purchased on the Superhero platform, which are held in your name under Superhero Securities. You will receive dividends into your Superhero account and are eligible for Share Purchase Plans and rights issues.

The shares purchased within your Superhero account are yours and cannot be accessed by others, including claims from any creditors of Superhero. Superhero Securities is not able to exercise any rights attached to the ownership of your securities, including disposing of, or otherwise dealing in, your securities, unless you instruct Superhero Securities to do so.

If Superhero goes out of business, will I lose my shares?

As per our FAQs and Terms & Conditions, your shares are held by Superhero Securities Pty Ltd (Superhero Securities) as custodian, not by Superhero Markets Pty Ltd (Superhero Markets), the company that operates the trading platform. 

In an unlikely scenario where Superhero Markets was no longer operating, your shares could be transferred by you from Superhero to another broker account.

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