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FAQs - Account maintenance

Where will my dividends be paid?

Your dividends will be paid into your share account.

How are corporate actions dealt with?

If you hold a Share Saver account or a Share Builder account, then corporate actions are handled on your behalf by FNB after we have obtained an expert opinion on the action.

If you hold a Share Investor account, you would have been asked how you would want to handle the corporate actions relating to your share holding, when you opened your account.

How do I know how my portfolio is performing?

A percentage gain or loss and the value of the gain or loss is shown on your portfolio screen. This compares the price at which you bought the share to the current price for the share on the market.

Can I view my portfolio via an FNB ATM (Automatic Teller Machine)?

No, this functionality is unfortunately not available.

Are there any tax issues that I need to consider before buying or selling shares?

Shares attract two kinds of returns, capital growth (appreciation) and dividends. Based on current South African tax laws, dividends are not subject to income tax (however are subject to Dividends Tax) and capital growth is subject to capital gains tax upon disposal of the share. If you hold a share as a long-term investment (various factors are taken into account including the period of time which the share has been held), any capital growth (appreciation) upon disposal may be subject to capital gains tax.

On the other hand, if you were to actively buy and sell shares at short intervals or if your intention to buy and sell shares was executed with a profit motive, you may be considered to be a trader in shares and any receipt from the sale of such shares will be subject to income tax at your marginal rate of tax.

Tax is a complex area and it is advisable to consult your financial or tax advisor for details of the tax implications when you invest in shares. For a comprehensive explanation on how shares are taxed, visit our Share Investing Education Centre. You will find these educational articles under Share Investing & Krugerrands - Download application forms, brochures & Tax Guide.

Disclaimer:

"Please note that these articles are for information purposes only, as FNB does not provide tax advice to investors (each investor's tax circumstances are different, accordingly each investor should seek their own tax advice)."

What documentation (statements, tax reports etc.) will I receive?

You will receive quarterly statements detailing your portfolio and a monthly transactional history. In March of every year an IT3(b) certificate will be generated for the tax year ending 28 February.

If you earn both interest and dividends from your share investing activities two separate IT3(b) certificates will be generated and this will assist you to complete your annual tax return.

In respect of any interest earned by you, the IT3(b) certificate will only be posted or emailed to you if you earn R500 and more of interest. If you do not receive your IT3(b) certificate you can request a copy at any branch or contact us on 0860 67 4446 and we will either send the certificate to you or print the certificate for you. Alternatively you can log on to your online banking profile and print it from there.

In respect of dividends earned by you we will post or email your IT3(b) certificate to you. If you do not receive your certificate you can request a copy at any branch or contact us on 0860 742 737.

FNB is also obliged to report to the South African Revenue Service ("SARS") all details of interest earned and / or paid and / or dividends earned from the share investing activities, irrespective of the Rand value.

Furthermore, you will also receive a statement of capital gains and losses which you must use to complete your annual tax return. The onus remains on you to declare the manner in which you held the shares ie: whether on capital or revenue account.

How do I know that my account details and investment information are kept confidential and that no one else can buy or sell shares on my account?

FNB has strict security measures in place to ensure the security and confidentiality of customer accounts. Authentication measures are in place (e.g. One Time Pin) to ensure that only you, the account holder, can place orders on the account.

What if I have questions, trade disputes, or complaints?

Contact us on 0860 SHARES (0860 742 737) during office hours or email us at shareinvesting@fnb.co.za.

What documentation does FNB issue to SARS?

We are obliged to inform SARS of all interest earned and / or paid and / or dividends received by account holders. SARS has recently changed its reporting requirements with regard to interest. SARS now requires us as a bank (for the 2013 tax year) to report to them (SARS), all amounts earned and paid (including account fees, interest paid, interest earned and any other amount paid into or out of the account, etc) on each account held with us. We are also required to report all details to SARS with regard to any dividends you may earn and the dividend tax withheld.

Who do I contact if I have trading/account maintenance queries?

Please contact our call centre on 0860 SHARES (0860 742 737) during office hours or email us at shareinvesting@fnb.co.za.

Can I trade in shares and Krugerrands online as a Non-Resident/Emigrant account holder?

Yes you can. Once you have successfully opened a Non-Resident or Emigrant Share Investor account with FNB Online Banking access, you will have full functionality to trade online. For queries call 0860 SHARES (742 737).

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