Is Sharesies in trouble
2 min read

Is Sharesies in trouble

Greetings friends and readers,

Thanks for being part of our world and being subscribed to the newsletter. We’ve unfortunately been dropped into another lockdown. Luckily we’re a bit better prepared this time. Getting into a good routine is the key I’ve found.

Book Club

1984

I’ve started reading this masterpiece by George Orwell, and so far I’ve not been disappointed. To be honest, I am not very far in to the book, so I could be wrong but it has unbelievable reviews on Audible and it has been recommended to me by a close friend. The premise of this fiction book is a world where big brother is looking at all our moves. From our television screens to our everyday interactions. I can’t wait to see how the book plays out. I might do a follow-up piece on a quick in-depth review once I’ve finished the book.

Sharesies in trouble?

A good friend of mine pointed me to an article in where Sharesies has received a warning about an anti-money laundering and countering financing of terrorism act.

The long and short of the article is that Sharesies has been issued a warning for not having enough anti-money laundering procedures in place. There were quite a few accounts that had over a thousand dollars in them that were unverified accounts. You can read the full article here.

The warning comes as no surprise in my opinion. Sharesies has had major success in growing a large customer base in a short amount of time. Up until recently, they did not have 2-factor authentication as an option.

I might sound quiet, however, there is hope yet. No, I won’t be moving my investments, but it does lead to another line of questions. What is Sharesies doing about all of this? What would happen if Sharesies goes under as an entity? Sharesies have done an excellent job in listening to the users of their platform. Within a week of raising my concerns about 2FA or multi-factor authentication, they had implemented the feature. I’m sure it wasn’t just because of me but I believe it was because they saw there was a problem and they solved it. So then what about if they go under?

Well Sharesies have a response to this as well, they have a public-facing article that outlines what it would mean if they were to go under. Long and short of it is that "All investments and money are held on bare trust by a separate custodian company called Sharesies Nominee Limited." So you would contact them and take control of your account/money. You can read more about that here.

I’m happy with the platform and I think they are growing so fast because they are doing so well. Oh and Wespac, one of New Zealand’s big banks recently received the same warning.

Part of next months blog post is how you can ensure your investments are looked after, not only on a platform security level, but what happens if you should pass away.

That's it for this weeks newsletter. Would love to hear your thoughts on the newsletters or blog posts.

All the best

MK