Your money and shares are available at all times.
You own your shares and have voting rights
Hatch doesn’t hold your shares. We provide access to the US share markets via DriveWealth, a US regulated broker-dealer.
Your shares are held in street name as 'Drive Wealth for the benefit of customers'. This is standard practice in the US, although there are also other options.
Holding securities in street name does not diminish your rights.
Your uninvested money is held in a low-risk Money Market Fund
Any uninvested money in your Hatch account will be automatically swept into a Money Market Fund with Dreyfus BNY Mellon (a common practice in the US). You can find their prospectus in our terms and conditions. The purpose of the fund is to provide a low-risk method of maintaining your Hatch account balance, you may even see some dividends.
Any dividends will appear in your account at the beginning of the month. the transaction will show up as 'MONEY MARKET FUND [DATE] DIVIDEND'.
What happens to my shares if DriveWealth or Hatch goes under?
In the case of US broker insolvency (DriveWealth, Citi), there are protections in place in the US such as Securities Investor Protection Corporation which insures each customer account for up to $500,000 (with a maximum of $250,000 in cash). More details on the insurance you get are here: www.sipc.org.
If Hatch ceases to exist, you will still own your shares, they will still be held by DriveWealth and we can’t touch them. We'll help you with whatever you decide to do next, whether it’s moving to another broker, or selling up and withdrawing your money.