Register maintenance, transfers, distributions and corporate actions
Register questions test record accuracy: who is on the register, what changes it, and how entitlements flow to investors.
The register
The register records holder name, address, holding, class, sub-fund, date of entry, certificate or statement status, and designations (for example ISA, pension, A/C). The TA is registrar and must keep it accurate and reconcilable to units in issue. Nominee and omnibus structures mean the register may show one holder while the TA maintains underlying investor data as a sub-register.
Transfers
A transfer needs a valid instrument (stock transfer form or TA-specific form), verification of the transferor's signature, and confirmation that minimum holding and eligibility restrictions are met. Transfers may be restricted, for example to US persons. UK stamp duty and SDRT normally do not apply to OEIC or authorised fund units, but 0.5% SDRT applies to shares in investment trust companies. Transfers are blocked during suspension.
Distributions
Key dates are the ex-date (the price drops), the record date (who is entitled) and the payment date. Equalisation applies to accumulation shares - the income element included in the price at purchase is returned as capital and added to the cost base for CGT.
Corporate actions
Splits, consolidations, mergers, sub-fund closures, class conversions, name changes and currency conversions all require register amendments, holder notification, and ratio-based restatement of holdings and cost base.
Worked example
A holder transfers 500 units of a GBP sub-fund to a spouse. Check the minimum holding (say 1,000 units): if the balance would fall below, the transfer may be refused or the whole holding moved. Verify signature and ID, confirm no suspension, update the register, issue a new statement and record the transfer date for CGT purposes.
Traps
- Confusing ex-date with record date.
- Treating equalisation as income when it is a return of capital.
- Allowing a transfer that breaches minimum holding or eligibility.
- Failing to reconcile the register to units in issue after a corporate action.