Frequently asked questions

A corporate action is any event which results in material changes to a stock. In its strictest sense, the term refers to any event which affects the number of shares in issue. This would include events such as takeovers, bonus issues, rights issues and consolidations. These actions will generally change the number or percentage of a company's shares you hold.

In practice, a corporate action will refer to a much broader spectrum of activities undertaken by a company and which have a significant influence on its shareholders. This can include name changes, dividends, liquidations and more.

A corporate action will usually be decided on by the company's board of directors and will usually require approval by the company's shareholders.

For a list of corporate action types and descriptions, please see our glossary of terms.

You should await contact from Hargreaves Lansdown. We will send you an explanation of what is taking place and how it affects you. If you receive any corporate action documents directly from a company for shares which you have recently transferred into a Hargreaves Lansdown account, please contact us.

For certain corporate actions, you may be required to make a decision. If this is the case, then we will indicate which options are available and how you can elect for your chosen option. We will also confirm the date by which your response must be received.

If you have signed up for our paperless service, then notification of corporate actions will be sent to your online secure inbox, which you can access when logged into your account. You will also be sent an email alert to let you know that you have a new message to read. If a deadline applies to the corporate action, then this will be made clear in the email alert.

If you have not signed up for the paperless service, then you will receive a letter in the post. However, if a deadline applies to the corporate action, then we may also email you (if you have registered an email address with us) to alert you of this.

In very rare circumstances, for example when it may be impractical to send a letter in the post or the corporate action does not require a response from you, we may send notification to all clients by email or other medium, such as via the Investment Times.

No, it is free to participate in corporate actions through Hargreaves Lansdown.

Corporate actions on holdings within ISAs will be processed in the same way as those in other accounts with some key exceptions:

Subscribing cash - Some corporate actions require you to make a cash payment in return for a new quantity of shares - for example rights issues, open offers, and exercise of warrants. If you want to hold the new shares within an ISA, then you must fund this purchase from cash held within the ISA. This may mean using an existing cash balance or selling shares from within the ISA to raise the cash. Alternatively, new money can be added to an ISA subject to your annual ISA subscription allowance.

If you are unable to fund the purchase from cash within an ISA, then you will be given the opportunity to take up new shares outside of the ISA. To do this, you may use cash held outside of the ISA, and on completion of the offer the new shares will be transferred out of the ISA. The shares can be transferred into a different Hargreaves Lansdown Nominee Account (or HL Fund and Share Account) or you can request a share certificate.

Ineligible investments - HM Revenue & Customs have strict guidelines on what investments can and cannot be held within an ISA. Full details can be found on the HM Revenue & Customs website.

Examples of non-qualifying investments include warrants, with certain exceptions. On occasion, a corporate action may result in your being credited with such an investment in your ISA.

Where such a situation arises, HM Revenue & Customs regulations stipulate that the holding must be removed from the ISA within 30 calendar days. To do this, you may sell your holding and retain the cash in the ISA or transfer the shares out of the ISA. The shares can be transferred into a different Hargreaves Lansdown Nominee Account (or HL Fund and Share Account) or you can request a share certificate.

In the event that you are required to take action in respect of a holding in an ISA, then you will be notified in writing.

Please note that there is an administration fee for issuing a share certificate for a new holding resulting from a corporate action.

The time in which to respond may be shorter than for corporate actions on UK listed stocks because of the way in which overseas stocks are held, or delays in obtaining official communications, or communicating instructions to the custodian of the shares in the overseas market. Also, on occasion, it can take longer than the stated time period to receive the cash or new share proceeds.

Some corporate actions may result in your holding a stock that is not eligible to be held in the UK settlement system. In such situations, it may be difficult or impossible for Hargreaves Lansdown to trade the resulting stock. In such an event, and where possible, you will be given written notice by Hargreaves Lansdown.

In some instances, UK residents may not be eligible to take part in corporate actions on overseas stocks. In certain cases, restrictions on overseas holders are applied.

Any cash proceeds that are received in a foreign currency will be converted to Sterling at the prevailing exchange rate upon receipt.

As information is occasionally scarce with overseas corporate actions, at certain times it may not be possible to contact you before the event reaches completion.

If you need to make a decision in respect of a corporate action, you have two options:

• Send your instruction by post to Hargreaves Lansdown at One College Square South, Anchor Road, Bristol, BS1 5HL. A prepaid envelope will be provided to assist with this.

• Send us your instruction online by logging onto your account and sending us an electronic instruction using the 'online election' facility. Please note that an instruction by ordinary email cannot be accepted. Electronic instructions can be accepted only from your Hargreaves Lansdown online account.

If you hold a share certificate, then your name should appear directly on the company's register of shareholders. As such, you will receive documentation directly from the registrar, detailing the corporate action and the options available to you. Your election must then be sent back to the registrar.

If you hold shares of the same company in both a Hargreaves Lansdown nominee account and in certificated form, then you will be contacted by both the registrar and Hargreaves Lansdown. Separate instructions (if applicable) must be returned to each.

The company's registrar will set a deadline for shareholder responses to a corporate action, and Hargreaves Lansdown must ensure that all the instructions of its clients reach the registrar by this deadline. Therefore, the Hargreaves Lansdown deadline will always be before the company registrar's deadline to give us time to process and forward on client instructions.

This is dependent on the type of corporate action. For some events for which an entitlement is calculated on a specific date (such as a rights issue or open offer), you will receive an application form, even if you have subsequently transferred your shares to Hargreaves Lansdown. In such cases, if you wish to participate in the offer, then you must make your application in your own name via the registrar. For other types of corporate actions, Hargreaves Lansdown will contact you outlining what action, if any, is required. If you are in any doubt, please contact Hargreaves Lansdown immediately.

No. Hargreaves Lansdown offers the HL service on an 'execution-only' basis. This means Hargreaves Lansdown shall not provide, and you do not expect, personal financial advice about the suitability of an account or any investment you hold within it, and you cannot hold Hargreaves Lansdown responsible for any loss in value of the investments you choose.

If you have missed the deadline set by Hargreaves Lansdown, then you should contact us immediately on 0117 980 9912. If the company registrar's deadline has passed, we will be unable to take any action on your behalf as their deadlines are strict. If there is a default election option, then this is what will be taken on your behalf if you miss the deadline.

If you wish to alter an instruction you have sent us, please contact us on 0117 980 9912 and we will do our best to accommodate you. This may not be possible if your election has already been acted on and forwarded to the company's registrar.

No. Some corporate actions are voluntary. By taking no action, you are simply not participating. Other corporate actions are mandatory and may or may not have options available. If there are options for you to consider, then this will be made clear in our correspondence. If you do not reply, then you will receive the default option, which will be clearly highlighted in our correspondence.

The company's registrar will often set a default election option for shareholders to be used when no reply is received. Hargreaves Lansdown will tend to use the same default option for its clients; however, there may be occasions when we will set a different default option.

If your cheque relates to a HL Fund and Share Account, please make it payable to 'HLAM client number'.

If it relates to an ISA account, please make it payable to 'HLAM ISA client number'.

If it relates to a SIPP, please make it payable to 'HLSIPP / Your Initials & Name.

Please ensure that you write your client number on the back of all cheques sent.

This will vary but generally will not be until the company has sent out the official documentation to shareholders. Hargreaves Lansdown will not contact clients as a result of press or market speculation.

If a response is needed from our clients, we aim to try to give clients at least three weeks' notice. However, this is dependent on the company's dispatching the official documentation sufficiently in advance of the deadline.

On some occasions, where the corporate action does not materially affect your holding and no action is required by shareholders, no prior notification will be sent and only a confirmation will be sent after the event.

If you believe you should have received correspondence from Hargreaves Lansdown, then please contact us on 0117 980 9912.

Explanations are usually given in the original London Stock Exchange RNS announcement, which can be found on the London Stock Exchange website. Alternatively, an explanation can be found in the official document issued by the company.

Hargreaves Lansdown will make every effort to obtain a copy of an official document should you require one. To request a copy, please contact Hargreaves Lansdown on 0117 980 9912. A copy of a corporate action official document can usually be viewed on the issuing company's website.

You may request a copy of an annual/interim report direct from a company's registrar. To find out who the registrar for a specific company is, please contact us on 0117 980 9912.

They can also be downloaded from our website, by clicking on the 'shares' tab, entering the name of the stock and viewing the company's factsheet.

Many companies now make their annual / interim reports available to download online from the investor relation section of their corporate websites.

Providing the company in question makes its shareholder benefits available to holders of shares within a nominee service, then Hargreaves Lansdown should be able to obtain the relevant benefit. To request a shareholder benefit, you must send a written request to Hargreaves Lansdown or alternatively an email or fax.

Please see our detailed guide on shareholder benefits.

Please note that shareholder perks can change frequently and although we will do our best to keep the above list up to date, you should not base an investment decision on a shareholder benefit and should check with Hargreaves Lansdown that the benefit is still available before placing a trade.

Any new shares resulting from a corporate action will normally be automatically credited to your Hargreaves Lansdown Nominee Account. In instances where an instruction to move new shares resulting from a corporate action has been received, for example if new shares are to be moved from an ISA to a Fund and Share Account, these shares will be moved to the intended account as soon as is practicable. You will receive written confirmation of this, as opposed to a contract note, which should be retained for your records.

This will depend on whether the cash is paid as a capital or income payment.

Capital: The cash will be paid into the Hargreaves Lansdown Account from which the cash originated. It will remain within this account, earning interest at the prevailing rate, pending your instruction.

Income: The cash will be paid into your income account and will be subject to any standing instruction you have given us for that income, like hold on deposit, reinvest or pay out.

Yes. This can be done online or by contacting our dealers on 0117 980 9800. The cash can be reinvested from the date it is credited to your account. Frequently, we will provide you with a tear-off reinvestment slip when we confirm payment of the cash, which can be returned in the post.

Please note that you’ll need to provide three digits from your Secure Number if you want to deal over the telephone.

Before you withdraw money by electronic transfer, you need to set up a Nominated Bank Account. This can be done online via our secure website, or in writing. For security purposes, you will not be able to make a withdrawal for five working days after setting up or changing your Nominated Bank Account.

Online: To withdraw money to your Nominated Bank Account, simply log in, select the account you would like to withdraw from, go to the "Cash" section and choose Withdraw money from the quick links box. Payment will be made by Faster Payment, and there is no charge for this service.

Telephone: Once you have set up your Nominated Bank Account, please call us on 0117 980 9950 with your Secure Number to withdraw money from your account.