What is a Holder Identification Number (HIN)?
In share trading, a Holder Identification Number (HIN) serves as a unique identifier assigned to anyone who purchases shares on the Australian Securities Exchange (ASX). Understanding your HIN is crucial for managing your investments effectively.
What is a HIN and its purpose?
When you buy shares through a broker that offers CHESS sponsorship, your HIN is used to record the ownership of your shares in a system known as the Clearing House Electronic Subregister System (CHESS). This ensures that your ownership is securely logged and easily transferable.
The difference between CHESS and Issuer-sponsored shares
Not all brokers provide CHESS sponsorship. Some offer issuer-sponsored shares, which operate under a custodial model. In this arrangement, shares are maintained on a separate register rather than the ASX’s CHESS database. Understanding this distinction is vital for managing your investments and knowing how to access your holdings.
How to obtain a Holder Identification Number
Acquiring a HIN is straightforward. When you open an account with a broker or online trading platform that offers CHESS sponsorship, you will automatically receive a HIN.
Multiple HINs
You can have multiple HINs if you’re using different CHESS sponsors (brokers). Additionally, you can transfer your HIN and any holdings to a new broker when you decide to make a switch.
What does a Holder Identification Number look like?
A HIN is formatted as follows: it starts with an ‘X’ followed by ten digits. For example, a typical HIN may appear as: X0123456789. This unique identifier is essential for tracking your share ownership.
Where to find your Holder Identification Number
If your shares are CHESS-sponsored, you can usually find your HIN on your CHESS statement. If you don’t have a CHESS statement, it’s possible that your shares are Issuer-sponsored, held in a separate subregister, or managed under an omnibus HIN - essentially your broker’s HIN that encompasses all their clients’ holdings.
Issuer-sponsored shares and SRNs
For Issuer-sponsored shares, you will likely have a Security Reference Number (SRN) instead of a HIN.
Are HIN and SRN the same?
While HINs and SRNs serve a similar purpose in tracking share ownership, they are fundamentally different. Your HIN is registered on the ASX’s CHESS subregister, whereas an SRN is kept on a separate register maintained by the issuer of your shares. This distinction is important to understand when managing your investments.
Which share trading accounts are CHESS-sponsored?
If you’re interested in finding a CHESS-sponsored trading account, the Mozo database provides a comprehensive comparison of share trading accounts. You can easily view which online trading platforms offer CHESS ownership of shares by clicking the ‘Details’ arrow beneath each product for more information.
You may want to consider exploring the top five CHESS-sponsored share trading platforms highlighted in the Mozo Experts Choice Awards. This list features some of the best share trading accounts based on expert evaluations.