What is a Beneficial Owner (BO)?
Whether directly or indirectly, a Beneficial Owner is any person who controls 25% or more of an organisation.
If there is no Beneficial Owner, then a Senior Managing Official will need to be nominated.
What is a Senior Managing Official (SMO)?
A Senior Managing official (SMO) is an individual who makes (or assists in making) decisions that affect the business in a substantial way.
An SMO is usually the CEO or managing director, who controls the organisation through their role and makes financial and operating policy decisions.
This person will be identified in lieu of a Beneficial Owner and will need to provide their name, address, date of birth and required personal identification documents to be checked.
How to nominate a Senior Managing Official?
If a Beneficial Owner cannot be identified as owning 25% or more shares or voting rights in an organisation, then an SMO Nomination Letter may need to be provided to NAB Identity Protect to understand the ownership and control structure.
The SMO Nomination Letter needs to be completed by a registered accountant or lawyer, confirming there are no individuals who, directly or indirectly, hold 25% or more of the shares or voting rights in the organisation. This letter must also confirm the SMO’s full legal name, date of birth and residential address.
The SMO letter doesn’t need to be certified but it must include details of the attesting accountant or lawyer and their firm. Details required include their role, accreditation (e.g. CPA or CA), registration number, address and contact details.
You can find a copy of the SMO Nomination Letter template (PDF, 785KB), opens in new window here, including detailed instruction for its return.
Non-beneficially held (NBH) shares
If an individual holds shares as trustee, executor, nominee or on account of another individual, these shares are shown as non-beneficially held, because the holder is holding the shares for the benefit of someone else.
An individual, partnership or company who holds shares in their name, on behalf of another individual or entity is called a Nominee Shareholder (NS). The individual or entity that has effective ownership and control of those shares is the Beneficial Owner (BO).
You may need to provide information about non-beneficially held shares (NBH) to help us identify their Beneficial Owner(s) which may include:
- A Share Certificate or Nominee Agreement which details on whose behalf the shares are being held, their address and date of birth.
- A Trust Deed, including any amending deeds or variations if shares are held on behalf of a trust, that shows the shareholder as a trustee.
- An attestation from a registered accountant or lawyer with details of the ownership structure and ultimate Beneficial Owner(s). See Attestation of Beneficial Ownership (PDF, 822KB), opens in new window, including detailed instruction for its return.