What is Direct Registration Shares (DRS)?
DRS (Direct Registration System) provides registered shareholders with the option of holding their shares in book-entry (electronic) form instead of a physical stock certificate. DRS Format allows shares to be transferred between a broker dealer and the transfer agent electronically.
DRS shares are held in the name of the registered shareholder and are represented by a DRS Transaction Statement or DRS Advice. DRS shares cannot be lost, thus avoiding the cost and effort involved in replacing lost certificates. The shareholder retains full ownership of the shares as well as all the traditional voting rights and privileges of being a share owner.
CST does not accept ACAT transactions.
How can I change my certificate(s) into Direct Registration Shares?
Most companies participate in the Direct Registration System. If they are a participant and your certificates are not affixed with any legends restricting the transfer of the shares, you may submit the certificates with an instruction letter requesting the movement to DRS. Please be advised, CST does not accept ACAT transactions.
We recommend using a trackable mail method.
Mail: Continental Stock Transfer & Trust Company
Attn: Transfer Department
1 State Street, 30th Floor
New York, NY 10004-1561
If you have any questions, please send us an email inquiry:
Email: [email protected]. Please include the name of stock, account number, registered name on the account and last 4 digits of the Tax ID.
Telephone: (800) 509-5586 or (212) 509-5586, Option 7. Our customer service representatives are available Monday through Friday, 8 am to 6pm eastern time.
How do I move my shares to a broker?
To electronically transfer your DRS shares, if applicable, into your brokerage account, your broker must be a DTC Participant and must also participate in the DRS Profile System. You will need to provide your broker with a copy of your Direct Registration Transaction Advice (DRS) statement.
Your broker will use the information on the advice to electronically move the shares. To effect the electronic transfer, your broker will need to include the following information which will need to match the information within the account held with CST:
CST Account Number – which should be a total of ten digits. If your account number is less than ten digits, please add leading zeros. This ONLY applies to moving your shares to a broker.
Social Security or Taxpayer Identification Number
Name of your CSTT account
CST will honor such requests from any broker participating in the DRS Profile System. While a broker should have your authorization to debit holdings from your CST account, CST will have no way of verifying if you actually authorized the transaction since the instruction is coming directly from the broker.
This process is all automated and takes anywhere from 48-72 from the time your broker initiates the transfer in the DTC system.
Please be advised, CST does not accept ACAT transactions.
Why are my shares restricted? How do I remove the restrictions?
Restricted Stock is subject to restrictions on transfer, purchases and resale, generally because of its registration status with the SEC or due to contractual restrictions. It is commonly awarded as a form of employee compensation or as part of a merger or acquisition and may not be sold or transferred until certain conditions have been met.
Inquiries or requests regarding restrictions can be submitted via:
Email: [email protected]. Please include the name of stock, account number, registered name on the account and last 4 digits of the Tax ID.
Telephone: (800) 509-5586 or (212) 509-5586, Option 2. Our customer service representatives are available Monday through Friday, 8 am to 5pm Eastern Standard Time.
Change a name due to marriage or divorce
This type of name change is considered a legal transfer. If Mary Jones gets married/divorced and changes her name to Mary Smith, the following documents will be required:
Presentation of the original stock certificate(s). If the shares are held in book entry form (DRS, DRIP etc.) you may submit the Statement or make reference to the shares in the letter of instruction.
A signed letter of instruction requesting the name change and providing the address and social security number for the creation of a new account.
A Stock Power with the medallion guaranteed endorsem*nt of Mary Smith in the following format:
X___________________________________________
Mary Smith formerly Mary Jones (by marriage/divorce)
Please note that a copy of the marriage certificate or divorce decree will be required by the financial institution that guarantees your signature.
Custodial Registrations
There are several possible custodial registrations. A common type of custodial registration requires the names of the custodian and the beneficial owner who is a minor. An example of a “Custodial” registration is Mary Smith CUST Don Smith NY UNIF TRANS MIN ACT. Note that the two-letter state abbreviation must appear before “UNIF”.
How to remove a deceased joint tenant as a registered holder
If the subject registration is a joint tenants account with the rights of survivorship (Joint Tenants or Tenants by the Entireties), the following documents will be required:
Presentation of the original stock certificate(s). If the shares are held in book entry form (DRS, DRIP etc.) you may submit the Statement or make reference to the shares in the letter of instruction.
A certified copy of the Death Certificate of the decedent.
A notarized Affidavit of Domicile executed by the surviving tenant. An Affidavit of Domicile is a sworn statement which is to be signed before an official notary public. The purpose of this form is to enable CST to secure the transfer of shares owned by the deceased at the time of death under the laws of the deceased’s legal residence.
An Inheritance Tax Waiver if applicable (this requirement depends on the date of death and the State of residence at the time of death).
A formal signed instruction letter detailing the transfer by including the name of the transferee(s) with addresses and social security or tax identification numbers and the number of shares to be transferred to each.
A Substitute IRS Form W-9 (Certification of Taxpayer Identification) completed for each transferee.
A Stock Power with the medallion guaranteed endorsem*nt of the surviving tenant will be required if additional names are added to the joint tenancy or if the shares are transferred to another individual or entity.
How to transfer shares from a decedent’s name?
If we are the agent for the securities, the following documentation will be required if the shares are in the name of an individual decedent:
Presentation of the original stock certificate(s). If the shares are held in book entry form (DRS, DRIP etc.) you may submit the Statement or make reference to the shares in the letter of instruction.
A Probate Court certified copy of the certificate of appointment (Letters Testamentary of Administration or equivalent) of the personal representative (executor, administrator etc.) of the estate of the decedent dated within sixty (60) days (six months for New York State) of the date of the transfer request. Please see below if the estate is not probated.
A Stock Power with the medallion guaranteed endorsem*nt of the personal representative (executor, administrator etc.) of the estate of the decedent.
A notarized Affidavit of Domicile executed by the personal representative of the estate of the decedent. An Affidavit of Domicile is a sworn statement which is to be signed before an official notary public. The purpose of this form is to enable CST to secure the transfer of shares owned by the deceased at the time of death under the laws of the deceased’s legal residence.
An Inheritance Tax Waiver, if applicable (this requirement depends on the date of death and the State of residence at the time of death).
A formal signed instruction letter detailing the transfer by including the name of the transferee(s) with addresses and social security or tax identification numbers and the number of shares to be transferred to each.
A Substitute IRS Form W-9 (Certification of Taxpayer Identification) completed for each transferee.
If the decedent’s estate is not probated and is subject to the Small Estate statute of the state of legal domicile (residence) of the decedent at the time of his/her death, then the following documents will be required in lieu of the Certificate of Appointment of the personal representative:
An official notarized certificate (Small Estate Affidavit) as prescribed by statute under the laws of the State of legal domicile which lists the decedent’s legal heir(s). The Affidavit must be dated within sixty (60) days of the date of the transfer request. It should be noted that the value of the estate cannot exceed the Small Estate limit.
A certified copy of the Death Certificate of the decedent.
How to transfer shares (stock power)
To change the ownership of a security, the following will be required:
Presentation of the original stock certificate(s). If holdings are held in book entry or dividend reinvestment then a certificate is not applicable.
If your certificate(s) is lost, please contact our Lost Securities Department at [email protected] for instructions to replace the shares prior to submitting your transfer presentation.
A Stock Power form OR a formal letter of instruction which details the transfer by providing the name, address, social security or tax identification number of the transferee(s) and the number of shares to be issued to each. Stock Power form or letter of instructions must be affixed with a medallion guaranteed endorsem*nt by the current registered shareholder or legal representative.
A substitute IRS Form W-9 (Certification of Taxpayer Identification) completed for each transferee.
A notarized Affidavit of Domicile if transferring shares involving a deceased shareholder. An Affidavit of Domicile is a sworn statement which is to be signed before an official notary public. The purpose of this form is to enable CST to secure the transfer of shares owned by the deceased at the time of death under the laws of the deceased’s legal residence.
In some cases, we may require additional documents to complete the transfer. Please see other answers in this section to obtain additional information about transfer requirements and to download required forms.
Individual Registration
This registration gives sole ownership to the single individual and requires that the person’s legal name be used. It is required that the full first name be provided rather than an initial. An example of an individual registration is Mary Smith.
A Stock Power form OR a formal letter of instruction which details the transfer by providing the name, address, social security or tax identification number of the transferee(s) and the number of shares to be issued to each. Stock Power form or letter of instructions must be affixed with a medallion guaranteed endorsem*nt by the current registered shareholder or legal representative.
Joint Registrations
Joint Tenants with Rights of Survivorship: This registration is used when two or more individuals have equal claim to the assets. Should one of the parties die, ownership of the assets passes to the surviving tenant(s). An example of a “Joint Tenants with Rights of Survivorship” registration is Mary Smith & Barbara Smith JT TEN.
Tenants In Common: This registration allows an appropriate portion of the assets to pass to the estate of the holder upon the holder’s death rather than to the surviving tenant. An example of a “Tenants In Common” registration is Mary Smith & Barbara Smith TEN COM.
Tenants by the Entireties: This is a Joint Tenant account with Rights of Survivorship between spouses ONLY. An example is Mary Smith & George Smith TEN ENT. Mary and George must be a married couple.
A Stock Power form OR a formal letter of instruction which details the transfer by providing the name, address, social security or tax identification number of the transferee(s) and the number of shares to be issued to each. Stock Power form or letter of instructions must be affixed with a medallion guaranteed endorsem*nt by the current registered shareholder or legal representative.
Transfer On Death (TOD) Registration
The owner of a security registered in TOD form must be a natural person holding the security as an individual or as joint owners with rights of survivorship (i.e., Joint Tenants or Tenants by the Entireties). Tenants In Common or Community Property joint accounts are not permitted as by definition they do not have rights to survivorship. TOD registrations by non-natural persons (such as a Trust, Corporation or a Partnership) are not permitted. Only one beneficiary per registration may be designated by the security owner. While the owner must be a natural person, the beneficiary can be an individual or an entity (corporation, charity, partnership, custodial account (Uniform Transfers to Minors Act only), trust etc.).
Note however that until the death of the owner, the beneficiary has no rights to the shares and as such any transfer of the shares prior to the death of the owner would not require their consent in any way.
We accept TOD registrations for households in states recognizing this registration, except for certain issues for which we only act as the co-transfer agent.
An example of a TOD registration is Mary Smith TOD Jane Smith Subject to STA TOD Rules.
A Stock Power form OR a formal letter of instruction which details the transfer by providing the name, address, social security or tax identification number of the transferee(s) and the number of shares to be issued to each. Stock Power form or letter of instructions must be affixed with a medallion guaranteed endorsem*nt by the current registered shareholder or legal representative.
Trust Registration
Registering shares in the name of a Trust requires the following specific information be provided:
The full name of the Trust
The name of the trustee(s)
The date the Trust was created
The beneficiary of the Trust
A copy of the first and last pages of the trust agreement or more specifically the pages which show the trustees and the signature page.
An example of a “Trust” registration is Mary Smith Trustee U/A Dated 4/15/98 The Mary Smith Revocable Living Trust FBO Mary Smith.
A Stock Power form OR a formal letter of instruction which details the transfer by providing the name, address, social security or tax identification number of the transferee(s) and the number of shares to be issued to each. Stock Power form or letter of instructions must be affixed with a medallion guaranteed endorsem*nt by the current registered shareholder or legal representative.
When a former minor reaches the age of majority (Custodial Registration)
After determining that the age of majority has been reached by checking the State statute, the following will be required:
Presentation of the original stock certificate(s). If the shares are held in book entry form (DRS, DRIP etc.) you may submit the Statement or make reference to the shares in the letter of instruction.
A Stock Power with the medallion guaranteed endorsem*nt of the custodian or the former minor.
A copy of the former minor’s birth certificate or state issued ID.
A formal signed instruction letter detailing the transfer of the shares. The address and social security number of the former minor should be provided.
