Nominee definition

A nominee is a person or institution that holds legal title to an asset on behalf of someone else. In finance, nominees commonly hold shares, bonds, or funds for the investors who actually own them.

The nominee appears on the register as the holder of record, while the underlying investor keeps the economic interest. Brokers, custodians, and other institutions use nominee structures to pool client holdings and simplify settlement and administration.

A nominee is not the beneficial owner. The nominee is the registered legal holder; the beneficial owner is the party entitled to the dividends, interest, gains, and usually the voting rights. Legal ownership and beneficial ownership can therefore sit under different names, which is why investors check how their assets are held.