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CISI Introduction To Securities And Investment Practice Exam

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Who typically maintains the share register for registered shares?
Correct Answer:
The company registrar or a specialist firm of registrars maintains the share register.
Explanation:
The main idea is who keeps the official record of who owns registered shares. For registered shares, that ownership record is the company’s share register, kept by the issuer or by a specialist registrar acting on the issuer’s behalf. The registrar updates the register when transfers occur, when shareholders change details, and to reflect current holdings so the company can send dividends and notices properly. CREST is a dematerialised settlement system used for electronic transfers, not the official share register. The stock exchange is a trading venue, and the central counterparty handles clearing and settlement of trades; neither maintains the official ownership register.

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