On this page you will find answers on everything you might need to know about securities accounts. If you have additional questions, please contact us.
1) What is the difference between having securities in a custody account or in an owner-registered account?
In Sweden, there are two ways in which you may deposit your securities:
- by registration as an individual holder of an owner-registered account, which means that the securities account is in the name of the account holder, or
- by placing them in a custody account with a nominee (a bank or broker) who in turn is affiliated to Euroclear Sweden. Nominees can choose how to register the investor's securities in the VPC system. They can collect all their clients' holdings in an account at Euroclear Sweden in the name of the nominee and then maintain a register of their individual clients in their own custody account system. Alternatively, they may choose to register their clients in the VPC system as owner of an account known as a service account.
Regardless whether you have an owner-registered account or a custody account, it is always the bank or broker that handles changes and updates in the holdings or other information.
The most common securities in owner-registered accounts are shares, warrants and various types of bonds.
You can hold one owner-registered account free of charge; however, we charge an annual administration fee for each additional account. The fee is charged for additional accounts with a holding on 31 December each year. We do not charge anything for collateral accounts or "non-cash accounts" that are opened as a result of corporate actions.
The administration fee is charged due to the extra work involved in administrating more than one owner-registered account. For example, we send out an annual statement for each owner-registered account.
If you as an owner-registered account holder would like to consolidate all of your holdings into one owner-registered account, you should contact the account operator, i.e. the bank or securities broker with whom your owner-registered account is registered.
If you want to know the acquisition value (the purchase price) of the securities sold during the previous year and do not have a transaction statement, you should contact the account operator that made the purchase on your behalf. Note that we do not have information about the acquisition value or the sale proceeds.
In October 1990, printed share certificates where replaced by a book-entry system at Euroclear Sweden. Today, shares are registered in owner-registered accounts. During the conversion, we did not know what account operator, i.e. a bank or a broker, the investor wished to retain. Therefore, their shares were placed in a temporary owner-registered account, known as a "conversion account".
As long as the shares are in the conversion account, you do not have access to them and cannot sell them. Dividends are paid out via a bankgiro check.
In order to transform the conversion account into a normal owner-registered account, you must select an account operator to handle the account on your behalf. The account operator can then facilitate and ensure payment directly into your income account.
The account operator, i.e. a bank or broker, is the institute which is retained to handle investors' owner-registered accounts. It is the account operator that registers all information on the owner-registered account.
For information regarding the owner-registered account, you should contact your account operator.
Several people can jointly own the holding on an owner-registered account, known as a joint owner account. A joint owner account is opened and closed by the account operator, i.e. the bank or broker. A list of all joint owners shall be given to the account operator when the account is opened and will be filed by them. We do not receive this information when the account is opened.
The representative of the joint owner account will receive all notices of changes on the account. In January each year, we send out an annual statement to the representative.
In case we have not received information about the joint owners, the representative will receive a form where he/she can register three joint owners. If the number of owners is larger than that, it is possible to copy the form. Please note that if the requested information is not delivered or is inadequate, the representative will be reported as the single owner to the Swedish Tax Agency.
In case we have received information about the joint owners, the representative will receive a printed statement. If the statement is correct and still valid, there is no need for the representative to send the form to us. If the statement is incorrect and the representative wants to change something (e.g. an address, percentage shares), register new joint owners and/or remove no longer current joint owners, he/she needs to send the correct information before the given deadline.
When we have registered the distribution of the holding, the information will be reported to the Swedish Tax Agency for each joint owner. In March, each joint owner will receive an annual statement and a statement about their share of the holding.
We charge an annual administration fee for joint owner accounts due to the extra work of registering the joint owners and reporting it to the Swedish Tax Agency.
If you wish to buy and sell securities, the easiest way to do so is via your bank or broker, which is the account operator for your owner-registered account. You can also provide a different bank with a power of attorney to sell on your behalf. You should submit a sell/buy order to your account operator which you wish to retain.
Euroclear Sweden does not transact any purchases or sales of securities, neither do we have any information regarding buy or sell payments. Only the account operator has this information.
You will receive a contract note from your account operator, i.e. a bank or broker, the day after a transaction. The contract note shows, among other things, at what bid/ask price the transaction was made, and payment date. Information regarding the amount paid is not registered in the owner-registered account. Only the account operator has this information.
The payment date is the day on which the change in holdings is registered in the owner-registered account and when you make or receive a payment. The payment date is therefore sometimes called the book entry day. We send out a receipt to confirm the change the day after the payment date.
If you wish to sell securities on your own, you, as the seller, and the buyer should reach an agreement. This agreement will state the price for the transaction and the payment date. The agreement and a transfer request are presented to the account operator, i.e. a bank or a broker, which registers the securities transfer from your owner-registered account to the buyer's.
In order to participate in a new share issue, you must be registered as an owner on the record day. The record day is stated in the public announcement of the new share issue from the company. The owner receives a prospectus and an accounting report with a payment slip and a notice which confirms subscription rights ("TR" in Swedish) registered in the owner-registered account.
If you wish to exercise your subscription rights and purchase more shares in the company, you must pay for the new shares using the payment slip. If you only wish to exercise some of the subscription rights, you must contact one of the issuing banks stated in the prospectus. Sometimes an application form is enclosed, on which you can fill in how many of the subscription rights you wish to exercise. Then you only pay for the rights exercised.
The issuing bank deducts the subscription rights from the owner-registered account and instead books paid subscribed shares ("BTA" in Swedish) in the owner-registered account. When the issue is completed the paid-up subscription shares are replaced in the owner-registered account with the shares ("AK" in Swedish).
You can sell your rights instead of exercising them. The account operator, i.e. a bank or a broker, will help you to sell the rights.
If you do not exercise or sell the subscription rights during the subscription period, normally the subscription rights are removed from the owner-registered account and you will not be compensated.
In the event of a bonus issue or split you do not need to do anything. You will receive a notice that confirms that you have received the new shares or any fractional scrip certificate ("DR" in Swedish) in the owner-registered account.
In the event of a takeover bid you will receive a prospectus, application form, and often a report showing what shares are covered by the offer and how many of these you hold. The prospectus contains the price which you will receive for your shares. If you decide to accept the offer, you should return the application form to the issuing bank that is handling the takeover. The issuing bank reserves your shares in a special "non-cash account" during the takeover period. You will receive notice showing this registration in the non-cash account. At the end of the application period you will receive a receipt showing the withdrawal from your non-cash account. The issuing bank handles the payment.
If you reject the offer and the acquiring company acquires 90% of the shares, it may in some cases, in accordance with a special procedure, be able buy out your shares. In other words, when the acquiring company holds more than 90% of the shares they can acquire the other 10%. This is usually called a compulsory redemption. The value of the shares is determined by arbitration or a court.
If the acquiring company decides not to complete the purchase, your shares are restored to your original owner-registered account by Euroclear Sweden.
As a shareholder in a Swedish company you normally receive dividends once a year. The amount of the dividend is determined at the shareholder meeting.
If you are registered as a shareholder on the record date you are entitled to the dividend. The record day for dividends occurs two bank days after the shareholder meeting. Dividends are paid out three bank days after the record day if the dividend is in Swedish crowns. If the dividend is in euro, the disbursement day is the fifth banking day after the record day.
Most interest-bearing securities, for example debentures and subordinated debenture, have interest payments during the term of the security.
If you are registered as the owner of interest-bearing securities on the record day, you will be entitled to interest.
Often, the interest is determined in advance and paid out 1-4 times per year. The record day for interest occurs on the fifth bank day prior to the disbursement date.
Securities known as "zero coupons" pay no interest during the term. The accumulated interest is part of the amount paid back upon maturity.
Premium bonds are registered in Euroclear Sweden, commencing with bond no. 1, 1996.
You no longer have to monitor winnings on these premium bonds since the winnings are automatically paid into the income account connected to the owner-registered account. Winnings are paid out four bank days after the lottery draw.
If you have won a prize, you will receive a winnings receipt showing the winning number.
First you should check which series and serial number you hold and then you can, using the link to the Swedish National Debt Office, receive information on the same day whether or not the bond has won.
In order to participate in a general meeting you must be listed in the register of shareholders which is compiled ten days prior to the shareholder meeting.
If you have shares registered in an owner-registered account, you will automatically be listed in the register of shareholders. If you have securities that are held in a custody account you must, in due time prior to the shareholder meeting, notify the account operator, i.e. a bank or a broker that you wish to participate in the meeting.
Everyone must also notify the company that they will be attending the meeting. How to provide notification is set forth in announcements or notices from the company.
19) How many days prior to the record date must I purchase shares in order, for example, to be listed as the owner on the date of the general meeting?
The number of days between the trade dates, in other words the date when the transaction takes place on the Stockholm Stock Exchange and the record date, is determined by the trading time schedule for the executing of trades. At present, this is three bank days between the trade date and the record date. You must therefore buy the shares three days before you will be formally listed as the owner in Euroclear Sweden's register.
We send out notifications to you as soon as any changes occur in the owner-registered account. Notifications are sent out by us, but the account operator, i.e. a bank or a broker, is listed as the sender.
Any questions concerning the notifications should be addressed to the account operator.
In January each year Euroclear Sweden sends out an annual statement to all owner-registered account holders who had securities holdings registered in their owner-registered account on 31 December and/or received dividend/interest in the previous year. The annual statement is sent out well in advance of the filing date.
The annual statement shows the holdings recorded as of 31 December, payments made during the year, as well as the year-end value (assuming that we have received this information). The annual statements are sent out by us, but the account operator, i.e. a bank or a broker, is listed as the sender. The annual statement shows the telephone number and the address of the account operator. Via the transaction KKKU it is possible for the account operator to update information concerning address and telephone number of the account operator.
We also submit a statement of earnings and deductions to the Swedish Tax Agency. The statement of earnings and deductions sets forth the securities holdings as of 31 December. Dividends received, interest, certain redemption amounts, and withheld preliminary tax during the year are also reported. In many cases, you can thus use a simplified tax return. It is generally only when you have bought or sold securities during the year that this must be specified on a separate appendix to the tax return.