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1Clear out junk files and repair common Windows errors2Fix the driver behind crashes, sound loss and screen glitches3Repair Windows errors before they cause bigger problemsYes. To buy or sell shares on the Australian Securities Exchange (ASX), you need a CHESS-sponsoring broker. To have a purchase registered on CHESS under your name, you also need the broker’s sponsorship agreement and must provide the relevant Holder Identification Number (HIN). Without those, the shares may instead be registered on the issuer-sponsored subregister.
What CHESS sponsorship means
CHESS is the ASX settlement system. When a holding is broker-sponsored, it is recorded on CHESS under the investor’s name and associated with a HIN. The ASX says a HIN can consolidate an investor’s broker-sponsored holdings. By contrast, an issuer-sponsored holding is recorded on the issuer’s subregister and has its own Securityholder Reference Number (SRN). ASX explains CHESS and sponsorship; its CHESS fact sheet describes the registration arrangements.
CHESS-sponsored and issuer-sponsored holdings compared
| Feature | CHESS-sponsored | Issuer-sponsored |
|---|---|---|
| Where it is recorded | On CHESS under the investor’s name | On the issuer’s subregister |
| Identifier | HIN; it can consolidate broker-sponsored holdings | Each holding has its own SRN |
| Broker relationship | Holding is associated with its sponsoring broker while sponsored this way | Can be traded through any broker |
| Selling or transferring | The sponsoring broker controls transfers to and from CHESS holdings in line with the investor’s instructions and sponsorship agreement | A broker may arrange conversion to CHESS to settle a sale; ask about the process and any fees |
These arrangements are not simply two labels for the same account: registration affects the holding’s identifier and its relationship to the broker. For the ASX’s explanation, see its CHESS fact sheet and CHESS investor information.
Do you own shares held through a CHESS-sponsored broker?
According to the ASX’s 2022 fact sheet, securities held in CHESS are the investor’s property, not the sponsoring broker’s. The broker controls transfers to and from CHESS holdings, but only on the investor’s instructions and under the sponsorship agreement. The agreement may also give the broker contractual or other rights, for example in relation to money owed, so read its terms rather than assuming the broker has no rights over the account.
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Check whether the account uses an individual or omnibus HIN
A HIN associated with your own CHESS holdings is different from an omnibus arrangement. ASIC Moneysmart warns that, in an omnibus HIN arrangement, investors are not the legal owners of the shares and have fewer protections, including no National Guarantee Fund claim rights. Ask the provider plainly whether the account uses an individual HIN in your name or an omnibus HIN, and check the terms for how ownership, corporate actions and voting rights are handled. See ASIC Moneysmart’s HIN definition, last updated 26 June 2025.
How to choose a CHESS-sponsoring broker
The ASX distinguishes online or non-advisory brokers, which execute orders chosen by the investor without recommending whether an investment is appropriate, from full-service or advisory brokers, which may provide recommendations, research and tailored investment plans and typically charge more. The ASX does not recommend brokers; it advises investors to contact providers directly to check that the services and fees fit their needs. Start with these questions:
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- Does this account give me an individual HIN in my name, or use an omnibus arrangement?
- Will my shares be registered on CHESS under my name, and what sponsorship agreement applies?
- What are the brokerage and account fees? Are there transfer or exit charges?
- How do I transfer holdings to another sponsoring broker or to issuer sponsorship, and what does it cost?
- Is the service order execution only, or does it include advice and research?
Fees, eligibility, sponsorship arrangements and transfer procedures vary by provider and can change. Verify current terms with the broker before opening an account; the ASX’s guide to buying and selling shares also directs investors to brokers for details.
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