FIN security

Hi everybody, I'm just looking at getting into the market and I was hoping someone can answer a probably stupid question.

My understanding of the FIN is that it's like say my pin number on my eftpos card. I use it to prove I'm me and no-one else should know it. When filling out the documentation for Direct Broking though it states they retain a copy of my FIN and I'm supposed to acknowledge that I'm giving them unlimited ability to transfer my holdings to other persons.

On the ASB securities website it states a broker may not retain my FIN beyond settlement of the transaction which sounds much more sensible to me.

If Joe Bloggs has a meltdown at Directbroking because his boss won't give him a raise or something what's to stop him using the FINs on file to wreak havoc? and how protected am I from fraudulent transactions.

I assume I'm being overly paranoid as I know Direct Broking is popular but I like my money and don't enjoy throwing it away so if anyone could clarify the risks or just explain why it's no big deal or something I would be very grateful.

Hi, and welcome to a great forum! It may be that your Fin no. will be encrypted on file with Direct Broking, but for any questions for them, why not ring: DIRECT BROKING FREE. 0800 805 777

I'm with ASB and have no qualms about security with them.

Good luck, and enjoy this forum.

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Originally Posted by Alwayslearning

Hi everybody, I'm just looking at getting into the market and I was hoping someone can answer a probably stupid question.

My understanding of the FIN is that it's like say my pin number on my eftpos card. I use it to prove I'm me and no-one else should know it. When filling out the documentation for Direct Broking though it states they retain a copy of my FIN and I'm supposed to acknowledge that I'm giving them unlimited ability to transfer my holdings to other persons.

On the ASB securities website it states a broker may not retain my FIN beyond settlement of the transaction which sounds much more sensible to me.

If Joe Bloggs has a meltdown at Directbroking because his boss won't give him a raise or something what's to stop him using the FINs on file to wreak havoc? and how protected am I from fraudulent transactions.

I assume I'm being overly paranoid as I know Direct Broking is popular but I like my money and don't enjoy throwing it away so if anyone could clarify the risks or just explain why it's no big deal or something I would be very grateful.

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Hi Alwayslearning,

Direct Broking collects our customer’s FIN so that we can transfer the securities in accordance with their instructions. As you may be aware, the FIN needs to be provided as part of a sell transaction in order for securities to be transferred out of the customer's holding at the relevant registry.

The FIN is stored in an encrypted form for security purposes, and is retained so that our customers do not need to re-advise their FIN for subsequent sales.

I hope this helps to clarify. If you have any further concerns, please feel free to contact us directly.

Thanks,
Mahalia

I use Craigs.Have done for years.When FINs and Common shareholder numbers came about,I had a bit of fun.
Now here's the point;I would not have a clue what my fin number is.!!! Craigs must have it encrypted in their system as I don't have any problems selling shares.

Thanks for the welcome and replies. Sorry about the delay coming back. Earthquakes etc. But I appreciate the replies. It seems self defeating to me that brokers would store a security feature I should be providing every time. I understand the information is encrypted to some unknown degree but the only reason for retaining it between transactions that I can see though is convenience over security which seems a terrible reason.

I didn't contact you directly Mahalia because I was interested in (no offense intended) unbiased answers but it appears I'm the only one it concerns. Either I'm overly paranoid or everyone else is too blase but as it now appears ASB also store the FIN I guess it's irrelevant as there is no alternative.