CREST Broker Ceases Trading

[Saibhris]

Assume I have purchased shares in Acme Inc. through a broker, and the transaction is settled using the CREST system. I have a CREST "personal member" reference code and the broker has a "Sponsor" reference code.

I begin to receive annual reports directly from Acme Inc., so I am confident that my name & address appears on their share register.

Then my broker goes out of business. The "Sponsor" CREST reference is no longer valid.

How do I sell my shares in Acme Inc.?

 

[sapmanie]

You're referring to E*TRADE?

 

[Saibhris]

No, not necessarily. The name of the broker is irrelevant - it could be Sharewatch or any broker that offers the so-called "security of CREST".

My question is an important test of how this security works in practice. In other words, if the broker (the CREST "Sponsor" as they are called) ceases trading, how do I sell my shares given that CREST will not deal directly with me?