THIS week has seen the start of the new system of paper less share dealing known as Crest, by which shareholders can opt to hold their shares in electronic form as part of a computer record rather than in the traditional share certificate paper form. The other significant feature about Crest is that it is the latest step in the development of a rolling settlement period for the buying and selling of shares. Over the past year, the old system of fort nightly account systems has been abandoned for five day rolling periods, and now, a three day settlement. Real time settlement payments on the day for any transaction will be introduced in 1997.

BCP Stockbrokers has brought out a very useful brochure explaining the intricacies of Crest and the likely impact it will have on ordinary Irish shareholders, in particular how they may risk getting less competitive prices for their shares if they opt to trade their paper certificates rather than electronic ones. The brochure is available free from BCP Stockbrokers, 71/72 Upper Leeson Street, Dublin 4, telephone (01)6617111.

Meanwhile, Bank of Ireland has announced that just over 50 per cent of its stockholders in 1995/96 have opted to take scrip dividends new shares instead of the traditional cash dividend under the Bank's Stock Alternative Scheme.

Introduced a few years ago by Bank of Ireland and a number of other publicly quoted companies, scrip options are beneficial to both the company and investor. The amount of cash Bank of Ireland had to pay out in dividends was reduced by £6.3 million while the shareholder avoids paying any tax on their new shares.