Do I have to hold an Investment ISA through a platform?

kulath

I have got some small shareholdings, and all I want to do is reinvest the dividends in the same shares.

I have got a shareholding in BT Group which I hold through BT Easyshare/Equiniti. Dividends are reinvested (DRIP) with a commission of 1% minimum fee £2.00. This is not an ISA. Happy with that (except I would prefer if it were an ISA).

I have got a shareholding in Lloyds Bank which I think I hold myself, and I get dividend cheques. This doesn’t cost me anything.

I have got shares in Aviva which I hold in an Investment ISA through Barclays Smart Investor. Dividends are reinvested in the same shares. I don’t entirely understand what I am charged, but it seems I might be charged transaction costs and I am certainly charged a minimum of £4.00 per month. This seems extortionate as most months nothing happens, and I am not happy.

Q1: Is it possible to hold my Investment ISA in a similar scheme to the BT easyshare where I just get charged a small amount when the dividends are reinvested?

Q2: Is an Investment ISA the same as a Stocks & Shares ISA?

Q3: I really don’t understand why it seems that for an Investment ISA I need to go into all the complexity of a platform, when a platform doesn’t seem to be what happens for the BT shares.

Q4: Can I transfer my BT and Lloyds shares into Stocks & Shares ISAs?

Sorry if these are stupid questions; I have read all about shares and platforms in the MSE guides, but it seems as though they are all about trading shares, whereas I just want to keep the same shareholdings.

dunstonh

Q1: Is it possible to hold my Investment ISA in a similar scheme to the BT easyshare where I just get charged a small amount when the dividends are reinvested?

yes

Q2: Is an Investment ISA the same as a Stocks & Shares ISA?

Yes. Investment ISA is just a marketing name from a provider.  Stocks & Shares ISA is the generic name

Q3: I really don’t understand why it seems that for an Investment ISA I need to go into all the complexity of a platform, when a platform doesn’t seem to be what happens for the BT shares.

you don't.  However, the general market movement has been towards investment platforms as that is where most of the market is.

Q4: Can I transfer my BT and Lloyds shares into Stocks & Shares ISAs?

No. You would need to sell and repurchase.  Some platforms have a share exchange process to allow it to be joined up.

Sorry if these are stupid questions; I have read all about shares and platforms in the MSE guides, but it seems as though they are all about trading shares, whereas I just want to keep the same shareholdings.

I don't believe MSE goes into trading at all.  Indeed, its investment coverage is limited as it without going into something like trading.   Most investors in the UK dont engage in trading either.  Although most dont invest in shares either but use funds.

masonic

A S&S ISA must be managed by an ISA manager. It does not have to be on a platform. Some ISA managers are asset management groups who allow you to put a limited selection of their house investments into an ISA. A few investment trust savings schemes have an ISA option. These options all generally have ongoing fees and transaction fees.

It is complicated if you wish to hold a set of unrelated investments in individual ISAs, so a whole of market option is generally preferable if you want to hold the investments of more than one company.

S&S ISA and "investment ISA" will refer to the same thing. Technically there are 4 types of ISA, and arguably 3 of those 4 could be called "investment ISAs".

You can transfer your shares into a trading account and then sell and repurchase in a S&S ISA, there are some options with no custody fees that might be worth considering if you just want to hold them with little to no account activity - such as X-O (Jarvis) and Trading212.

Alexland

kulath said:

Q3: I really don’t understand why it seems that for an Investment ISA I need to go into all the complexity of a platform, when a platform doesn’t seem to be what happens for the BT shares.

Someone needs to provide the ISA wrapper (including reporting to HMRC), customer service, etc

It doesn't mean you have to pay ongoing charges have a look at Jarvis X-O if you only want to hold shares.although there would be charges each time you trade.

https://www.x-o.co.uk/isa-account.html

Albermarle

I am certainly charged a minimum of £4.00 per month. This seems extortionate 

I know this is MSE but you can not really call £4 a month for anything 'extortionate '

kulath

Albermarle said:

I am certainly charged a minimum of £4.00 per month. This seems extortionate 

I know this is MSE but you can not really call £4 a month for anything 'extortionate '

Well, that entirely depends on what you are getting for the money. If it is a full dealing service, and I and making loads of transactions, then it may not be much, but as I am only getting dividends reinvested, it could end up with my funds being completely drained for nothing!