Direct Registration System
Many shareholders will be interested in the Depository Trust Company’s Direct Registration System. The DTC provides the DRS system to facilitate faster, lower cost stock transfers. Shareholders can mail their physical stock certificates to West Coast Stock Transfer to convert their shares into “book-entry” form. Book form shares remove many postage related costs, and allow for transfers to take place electronically. After shares are ‘on the books’ at a transfer agent, shareholders receive an ‘Advice’. A DRS Statement, often referred to as one’s ‘DRS Advice’, acts as a receipt for the deposit and represents the ownership of the shares.
Benefits of DRS
Electronic shares greatly reduce the overhead costs of the shipping and handling of physical certificates. Shares can be transferred into book form at DRS, or back into certificate form. Shareholder voting rights remain intact while in book entry. Gifting or inheriting book entry stock can take place without waiting for the paper certificates to be mailed in. A Medallion Signature Guarantee stamp is not required. Corporate actions from issuers, such as reverse splits or mergers, become less costly. Fewer fees are charged because transfers are easier to do. Higher levels of security are available over electronic medium which reduce fraud and increase shareholder confidence.
Deposit Shares at Broker through DTC
Either the shareholder or the Broker/Dealer can request shares to be converted to book entry form. Broker/Dealers must have authority granted in a Stock Power to do so on a shareholder’s behalf. Shareholders can request that their shares be converted into a DRS format by providing a Letter of Instruction (LOA): Direct Registration System (DRS) Request Form. This form will authorize West Coast Stock Transfer, Inc. to deliver shares to your brokerage account when your broker submits a DRS request to West Coast Stock Transfer, Inc.
Depending on your brokerage account, there may be forms for you to complete and provide to them. Every brokerage firm is different. The best approach to getting your stock transferred into your brokerage account is to: