Where are my shares and money held?

With Hatch, you own your shares, and they're held safely for you to access when you want.

Hatch doesn’t hold your shares. We provide access to the US share markets through a US regulated broker-dealer, DriveWealth.

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 means you have full shareholder rights.

Citi (Citigroup Inc) is custodian of your shares and is headquartered in New York City.

Any non-invested money in your Hatch account will be automatically swept into US bank deposit accounts, administered by our partner DriveWealth.

Here the uninvested funds will have protection from the FDIC - insured up to $1M USD per account. The uninvested US cash balances will not be held in a FIF-qualifying investment, so won't count toward the $50k NZD threshold.

Cash held in a foreign currency account may have tax obligations for you under the financial arrangements rules - as always, Hatch will help you navigate this at tax time.

In the case of US broker insolvency (DriveWealth, Citi), there are protections in place in the US, such as Securities Investor Protection Corporation (SIPC), which insures each customer account for up to $500,000 USD (with a maximum of $250,000 USD in cash).

Read more: What SIPC protects

If Hatch's financial circumstances change and we need to close, you still own your shares, and they will still be held by DriveWealth (we can’t touch your shares). Should this happen, our team will be committed to helping you with whatever you decide to do next, whether it’s moving to another broker, or selling up and withdrawing your money.

Read more: Hatch is powered by global wealth managers FNZ
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