Updating shares and securities 108-19092734

The asset value of the customer's shares is their net market value. The market value is determined by the latest available end of day sale price of the shares multiplied by the number of shares held. This applies for shares listed on the Australian Securities Exchange (ASX). The agency holds the share process on the Securities and Investment (SIN) system, also known as the Shares database.

As the system calculates the value of the customer's shares, customers only have to advise the number of shares they hold in each company.

If a customer has a dividend reinvestment plan, the customer needs to advise the agency of the additional number of shares or securities acquired.

The value of shares and securities listed on the Australian Stock Exchange (ASX) are automatically updated on 20 March and 20 September each year. The updates are loaded onto the customer's record before 20 March and 20 September but do not take effect until those dates.

When the automatic update is loaded, it appears on the customer's record with an Event Date in the future. For example, today's date is 15 March and the Event Date will show as 20 March.

If the automatic update has already been loaded and an update is needed before it takes effect, special coding will be needed. The instructions in workaround for MIS/SIS updates immediately prior to 20 March or 20 September must be followed.

Unlisted Australian and overseas public shares and securities are not automatically revalued. They are coded on the Unlisted Public Securities (SIUS) screen.

On 20 March and 20 September, a Manual Follow-up (MFU) activity is automatically created on all customer records that contain one or more Australian unlisted securities. Overseas unlisted securities are not included. The MFU has the keyword PNSIUSRV. Service Officers must manually reassess the value(s) by following instructions in Revaluing managed investments, shares and securities.

Do not use the delete function unless the customer and/or their partner never owned the shares listed on their record. Using delete removes the investment from the customer’s record and assumes the customer never owned the investment. This has serious implications, as the system may undertake a reassessment, which could generate an arrears payment. The correct procedure is to zero off the number of shares or the asset value in the case of unlisted shares.

A share consolidation or reverse stock split is where a company reduces the number of outstanding shares by combining the shares and increasing the face value. This will result in less shares with a higher unit price. For example 10:1, where 10 shares become 1 share.

A stock split is the opposite and is where a company increases the number of its shares to reduce the face value. This will result in more shares with a lower unit price. For example 1:10, where 1 share becomes 10 shares.