CDP should offer nomination service to stock investors

Many small-time stock investors hold individual accounts in the Central Depository (CDP) instead of joint accounts.

For these investors, who usually do not make a will concerning the assets in their accounts, their family members may face problems accessing the stocks when they die.

CDP should offer a nomination service, similar to the one the Central Provident Fund Board provides for its account holders.

The CDP service should apply to only a "sole nominee", unlike the CPF's, where the money can be distributed to a few nominees.

As shares are not cash, it would be difficult to distribute them to a few nominees.

Joint account holders would have no such problems as either holder can operate the account. So it is advisable to open a joint account with CDP for shares trading.

Tan Kwong Moh

A version of this article appeared in the print edition of The Straits Times on April 04, 2017, with the headline 'CDP should offer nomination service to stock investors'. Print Edition | Subscribe