Superhero can provide a copy of an audited controls report directly to your auditor for use in auditing your SMSF. Please reach out to us via Chat or email us at hello@superhero.com.au

Superhero has been built to ensure our customers and your investments are protected via a custodian, where financial assets are held on your behalf for safekeeping. It can be difficult to understand the different acronyms some brokers often refer to and what they actually mean so we’ve explained a few of these below. If you still have questions our team is available 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. 

All trades in Australia, whether through ASX or Cboe (including those placed on Superhero) are cleared and settled via CHESS.

How does custody work? What is the difference?

A custodian is a regulated financial institution licensed to hold financial assets on your behalf for safekeeping. The responsibilities placed on a custodian are very high, and so are the regulations and requirements on those institutions. Unlike keeping your cash under the mattress, there are legal consequences for custodians that do not take the appropriate care when holding your financial assets.

Custodians must have a licence that requires them to hold significant amounts of regulatory capital before they can provide those services. The intention of holding regulatory capital is to protect investors by ensuring a custodian is shielded should it fall into financial stress.

At Superhero, we have appointed a sub-custodian to hold shares on behalf of our customers in Australia for safekeeping.

Your shares are actually held by FinClear, Superhero’s market, clearing and settlement participant. FinClear is used by many major brokers in Australia and holds all of the CHESS-sponsored shares for customers of brokers such as Stake, WeBull, Shaw and Partners and numerous other firms as at September 2023.

As a regulated entity, FinClear holds the legal title as a separate entity from Superhero (so there’s a clear separation between our operating business and your shares). This means that your shares are not in any way linked to Superhero’s financial viability because FinClear holds your shares.

Having a custodian ensures that the beneficial owner (that’s you) is the only one who can give instructions on what to do with your shares: be it buy more, sell some or transfer them to another broker. That is also true for creditors, who have no legal right to access your assets if Superhero were to no longer operate.

At Superhero, a custodian holds shares on behalf of our customers for safekeeping.

Your shares are held by FinClear, our market, clearing and settlement participant on behalf of Superhero. FinClear is used by many major brokers in Australia and holds all of the CHESS-sponsored shares for customers of brokers such as Stake, WeBull, Shaw and Partners and numerous other firms.

As a regulated entity, FinClear holds the legal title as a separate entity from Superhero (so there’s a clear separation between our operating business and your shares). 

Having a custodian ensures that the beneficial owner (that’s you) is the only one who can give instructions on what to do with your shares: be it buy more, sell some or transfer them to another broker. That is also true for creditors, who have no legal right to access your assets if Superhero were to no longer operate.

No. It is against the law for Superhero to exercise any rights attached to the ownership of your cash or securities unless you specifically instruct us to do so. The cash and shares in your Superhero account are entirely under your control as the beneficial owner. 

Your Australian securities are held in a CHESS-sponsored account in the name of FinClear Pty Ltd as sub-custodian of Superhero. Neither Superhero nor FinClear acquires any beneficial or proprietary interest in your securities or cash, or the income and rights attached to your securities and neither are able to exercise any rights attached to the ownership of your securities, including disposing of, or otherwise dealing in, your securities. 

You alone are the beneficial owner of the cash and securities in your Superhero account.

Please refer to Superhero’s Terms and Conditions for further detail.

The National Guarantee Fund (NGF) is a compensation fund administered by the Securities Exchanges Guarantee Corporation (SEGC), that is available to meet certain valid claims which may arise from dealings with market participants of ASX and Chi-X.

Superhero, as a client of a market participant, may be able to make a claim to the SEGC in certain limited circumstances for failures of its market participant, including insolvency of the market participant. 

Superhero is not a market participant and Superhero’s customers are not able to make a claim to the SEGC.

Importantly, caps apply to any NGF claims that may be made by Superhero that may impact the outcome and customer expectations regarding any claim. 

You can find more information on caps and circumstances under which a claim by Superhero is permitted at https://www.segc.com.au/ in the ‘NGF Information Booklet’.

Your funds are held with NAB and can only be accessed via your Superhero account.

In the unlikely event our banking partner, NAB, were to fail, the funds held in your Superhero Wallet would not be covered under the Australian Government Financial Claims Scheme.

The Financial Claims Scheme provides protection to depositors of up to $250,000 per account-holder, per authorised deposit-taking institution (ADI) (bank, building society or credit union) in the event of the ADI failing.