Ordinary securities account

A securities account, also known as an ordinary securities account (CTO), is a bank account that allows you to hold and manage a portfolio of financial securities with a bank or brokerage firm.

It is the ideal tool for investing in the financial markets, offering great flexibility in the choice of investment vehicles and no deposit limits.

✅ The advantages of a securities account

• Versatile: possibility of investing in shares, bonds, UCITS, FIP/FCPI, ETFs, warrants, certificates, OPCIs, etc.

• Geographical flexibility: French or foreign securities, no restrictions on the origin of assets.

• No deposit limits: complete freedom to fund your account.

• Simple transfer and pledging: option to pledge the account without cumbersome formalities.

• Various management options: discretionary, advisory or discretionary management to suit your investor profile.

👥 Who can open a securities account?

• All individuals, whether adults or minors, residents or non-residents.

• A single account holder may have multiple securities accounts.

• Accounts may be opened individually, jointly, jointly and severally, or with dismemberment.

• Rights and responsibilities depend on the type of account (see summary table below).

📌 Simplified example :

• Individual account: single account holder, personal management and decision-making

• Joint account: all joint account holders must agree on decisions

• Undivided account: the usufructuary manages the account, the bare owner receives the income; in the event of death, the account continues for the benefit of the heirs

💳 How the securities account works

1. Opening: like a traditional bank account, with proof of identity, proof of address and bank details

2. Associated cash account: used to collect dividends and interest and settle purchases/sales of securities

3. Institution's obligations: advice, administrative monitoring and reporting of transactions (MiFID directive)

📈 Eligible media

• Securities: shares, bonds, etc.

• Collective investment schemes: UCITS/SICAVs, ETFs

• FIPs/FCPIs/OPCIs/Warrants/Certificates

• No holding limit, but cash deposit required for acquisitions 💰

⚡ Acquisition of securities

• Cash purchase: immediate payment and registration of securities in the account

• Transfer of securities: deposit of securities already held elsewhere

• Deferred settlement service (SRD): purchase or sale on credit, payment at the end of the month, leverage possible

  📌 Example: buy 100 shares at £10 with SRD, sell at £11 → £100 profit without having advanced the initial capital.

🛠 Management methods

• Discretionary management: the investor alone decides on purchases/sales

• Advisory management: the professional advises, but the final decision remains with the account holder

• Mandated management: the professional manages the entire account according to your profile and objectives

⚖ Taxation

• No specific tax advantage

• Income subject to the capital gains tax regime (RCM): interest, dividends

• Capital gains on securities sales also taxed

In summary, a securities account is a flexible and comprehensive tool for investing in all types of financial markets, offering complete control over the chosen instruments and the possibility to tailor management to your experience and objectives.

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