Confusion reigns in S&S ISA land

tradetime

Hi, I have been having a bit of an ongoing battle with a S&S ISA provider with regard to holding U.S listed ETF's in my self select ISA.

Long story short, I phoned up and quizzed their customer services prior to opening an account, provided them with a few examples of products I wished to hold, and was told that this was not a problem. After opening the ISA when I attempted to puurchase one of these etf's the whole story changed, I entered into an e-mail debate with another customer service rep, who eventually stated that it was a policy of her firm not to facillitate customers holding US ETF's
I requested that the issue be forwarded to her manager, and received an e-mail this morning stating

To clarify, Her Majetsy's Revenue and Customs rules do not permit ISA holders to trade US ETF's within their ISA.

In the meantime I have been in contact with another provider, whom I have grilled on the subject, and am being told that they have no problems allowing US listed ETF's....deja vu?
Anyone care to offer any opinion experience? Would be much appreciated.

ozzage

I don't know, but I'm interested to hear the result!

Baldur

Chapter 7 of the HMRC ISA Guidance Notes gives details of qualifying investments for S&S ISAs - http://www.hmrc.gov.uk/ISA/isa-guidance-notes-2008.pdf

tradetime

Baldur wrote: »

Chapter 7 of the HMRC ISA Guidance Notes gives details of qualifying investments for S&S ISAs - http://www.hmrc.gov.uk/ISA/isa-guidance-notes-2008.pdf

Thanks for that, I will try and work my way through it. I have now entered into an e-mail correspondance with the new prospectve provider to attempt to get some written confirmation of what their telephone rep said, experience has taught me that when people put something in writing and put their name to it, they tend often, though not always, to make sure of their facts.

tradetime

I can find nothing in that document that would exclude US listed ETF's from an ISA. I have written to Barclays Global since they list products on both UK and US exchanges to enquire if they are aware of any reason why their US listed products would be inelegible for an ISA, hopefully they can shed some light.

tradetime

ozzage wrote: »

I don't know, but I'm interested to hear the result!

In response to an e-mail my new prospective ISA provider has confirmed what their telephone customer service had said earlier in the day, ETF's listed in the US provided they meet the requirements of ETF's in general are eligible for inclusion in an ISA, so I guess it is time to move ISA's

tradetime

The plot thickens Barclays Global has informed me that their Dublin iShares are eligible for inclusion in an ISA, but none of their US listed products are. I am rapidly becoming of the opinion that S&S ISA's really aren't worth the bother.

A rep is due to call me back later, hopefully I can get some sort of definitive explanation of what criteria excludes them since he should be fully familiar with both products. Beats me how anyone can run a business without actually knowing why you can or can't do something.

tradetime

I don't suppose any IFA would like to exercise some speculation, or even better some knowledge as to why this ETF is eligible for an ISA and this one is not?
You can't actually do any worse than the people who are supposed to know, and it wouldn't constitute advice since I can only put in an ISA what I am allowed to.

Baldur

tradetime wrote: »

I don't suppose any IFA would lie.....

Freudian slip?

tradetime

Baldur wrote: »

Freudian slip?

LOL, too late I corrected it

turbobob

tradetime wrote: »

I don't suppose any IFA would like to exercise some speculation, or even better some knowledge as to why this ETF is eligible for an ISA and this one is not?
You can't actually do any worse than the people who are supposed to know, and it wouldn't constitute advice since I can only put in an ISA what I am allowed to.

I'm not an IFA, I don't know but if you click the "Key Facts" tab on each ETF (on the UK site), you can see whether it can be held in an ISA or not.

As an aside, even though the US domiciled iShares don't appear to be eligible for inclusion in an ISA, they are eligible for a SIPP if thats of any interest to you.