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What is a bidding entity?

Bidding

Last updated 9 days ago

What is a bidding entity?

Everything you need to know about bidding entities at Fresh Equities

A bidding entity refers to the legal entity/account that is used to complete transactions on Fresh Equities and hold shares. For clarity - a bidding entity is a brokerage account that can be used to transact shares.  

Please note that Fresh Equities does not provide brokerage services or hold shares/funds, you are required to use an external bidding entity to participate in our transactions (e.g. existing online brokerage account, full-service broker account or private wealth management account). On settlement day, the funds are deducted from your holding account and on allotment day the shares go directly into your holding account. You can add your bidding entities here.

Check out how bidding works here.

Check out how allocation works here.

There are a few different ways that bidding entities can be set up, which all follow ASIC’s 5 business structures. The 5 structures include: Individual entities (sole trader), Partnership entities (joint account), Company entities, and Trust entities (including the self-managed superfund model).

Setting up bidding entities on Fresh

In order to set up a bidding entity on Fresh, we require the *CHESS holding details from your brokerage account:

  • Registered name

  • Registered address

  • HIN**

  • Broker/PID***

Depending on the structure of your entity, we may require additional information.

It is important to ensure the information you are providing Fresh matches exactly with  your CHESS holding information. If the information is not exactly the same, the settlement may default to an SRN.

*CHESS: Clearing House Electronic Sub-register System. ASX's system for identifying entities and making sure that every time someone makes a trade/settlement the shares go to the correct place. 

**HIN: Holder Identification Number; essentially someone’s bank account number for trading

***PID: Participant Identification Number; essentially a BSB for brokers

Individual entities

An Individual, or sole trader, entity is the simplest bidding entity to set-up. Shares registered under this structure are held and owned by the individual. 

Setting up your Individual entity with Fresh Equities

To follow standard CHESS formatting for an individual entity, we require the full name of the applicant and registered address as shown below. 

Example: 

MS JANE DOE 15 WILLIAM ST, MELBOURNE VIC, 3000 HIN: X0012345678 PID: 1234

Partnership entities

A Partnership, or joint, entity is similar to an Individual entity, except the control of the entity is shared between the two individuals.

Setting up your Partnership entity with Fresh Equities

In order to set up your Partnership entity Fresh requires:

  • CHESS holding details of the entity;

  • A sophisticated investor (s708) certificate for the partner, or the account holder’s s708 certificate to include the Partnership under the listed entities section; and

  • KYC/AML check for the other account holder.

Example: 

MS JANE DOE & MR JAMES DOE 15 WILLIAM ST, MELBOURNE VIC, 3000 HIN: X0012345678 PID: 1234

Company entities

A Company entity is a separate legal entity whereby the owners (directors) limit their personal liability and the company acts as its own Individual entity. Companies must be registered with ASIC, and company officeholders have legal obligations under the Corporations Act. You will be participating on behalf of the company you set up.

Setting up your Company entity with Fresh Equities

In order to establish a Company entity for bidding, the following information is required:

If you have a corporate trustee account (company owned trust), then you will have to set-up a Trust account.

Example: 

DOE PTY LTD 15 WILLIAM ST, MELBOURNE VIC, 3000 HIN: X0012345678 PID: 1234

Trust entities

A Trust entity is a structure which holds assets for the benefits of others (beneficiaries). The trustee is responsible for the operations of the trust, including the investments made.

Setting up your Trust entity with Fresh Equities

When setting up your Trust entity on Fresh, the information required relates to the trustee. Fresh requires:

  • CHESS holding details of the entity;

  • A copy of the Trust Deed to verify the trustees; and

  • KYC/AML checks for all trustees.

Trusts also have a designation (identified within these brackets <> including A/C), which is essentially the Trust’s name. The legal name of a Trust is as follows: TRUSTEE <TRUST A/C>.

Trusts can have a variety of trustees including Individuals, Partnerships and Companies. When setting up your Trust entity with Fresh, we require all of the information outlined in the entity types above for the trustee. For example, if you are setting up a corporate trustee, we will require the information needed for a Trust entity set-up as well as a copy of the Company Extract and KYC/AML checks for the directors of the company. 

Example 1: Individual Trustee

MS JANE DOE <DOE A/C> 15 WILLIAM ST, MELBOURNE VIC, 3000 HIN: X0012345678 PID: 1234

Example 2: Partnership Trustee

MS JANE DOE & MR JAMES DOE <DOE A/C> 15 WILLIAM ST, MELBOURNE VIC, 3000 HIN: X0012345678 PID: 1234

Example 3: Corporate Trustee

DOE PTY LTD <DOE A/C> 15 WILLIAM ST, MELBOURNE VIC, 3000 HIN: X0012345678 PID: 1234

Self-managed Superfund (SMSF) entities

A SMSF entity is a special type of trust that provides benefits to its members upon retirement.

Setting up your SMSF entity with Fresh Equities

When setting up your SMSF entity on Fresh, the information required is the same as a trust and also relates to the trustee. Fresh requires:

  • CHESS holding details of the entity;

  • A copy of the Trust Deed to verify the trustees; and

  • KYC/AML checks for all trustees.

Delegated Authority

If you are setting up an account on Fresh Equities but do not control the entity you are setting up, the controller of the entity and yourself can sign a Delegated Authority form that gives a third-party the authority to make investment decisions on the behalf of the entity. Contact our team at clients@freshequities.com if you require this.

Please note, you will only be able to participate in DvP transactions if your broker/trading account allows for this. 

Our team is always happy to help! You can contact our team at clients@freshequities.com if you have any questions.

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