Why is TLT order rejected?

[NickW-uk]

Why would an order to buy iShares TLT ETF in my shares dealing account be rejected with no reason given?

[AndaIG]

Hi @NickW-uk,

Thanks for reaching out. There has been a recent change implemented on ETFs. We are no longer offering ETFs that do not produce a KID (key information document) to retail accounts. Unfortunately this covers most US ETFs. This change was made to be in line with ESMA regulation.

All the best, Anda

[Carda37]

On 27/04/2022 at 12:18, AndaIG said:

Hi @NickW-uk,

Thanks for reaching out. There has been a recent change implemented on ETFs. We are no longer offering ETFs that do not produce a KID (key information document) to retail accounts. Unfortunately this covers most US ETFs. This change was made to be in line with ESMA regulation.

All the best, Anda

Are dividends still being paid on shares currently held before this change? Given that retail customers were allowed to buy these ETF's with the entitlement to the dividends. 

[AndaIG]

Hi @Carda37

Thanks for reaching out. This change only affects opening positions. There should be no change on dividends accrued from prior positions. 

All the best, 

Anda

[NickW-uk]

On 27/04/2022 at 12:18, AndaIG said:

We are no longer offering ETFs that do not produce a KID (key information document) to retail accounts.

@AndaIG is this not the KIID for TLT? https://www.ishares.com/uk/individual/en/literature/kiid/kiid-ishares-treasury-bond-20yr-ucits-etf-usd-dist-gb-ie00bskrjz44-en.pdf

[AndaIG]

Hi @NickW-uk

Thanks for the feedback, 

Unfortunately our shares desk has confirmed we still would not be able to offer US ETFs even in the case that they do have KIDs. There are a few of them that do offer KIDs, however it is also a regulatory requirement that we make them available at the point of dealing. Since we are not able to do this, we are unable to offer them. 

All the best, 

Anda 

[NickW-uk]

16 minutes ago, AndaIG said:

... it is also a regulatory requirement that we make them available at the point of dealing. Since we are not able to do this, we are unable to offer them.

@AndaIGThank you for your quick response. Are there any plans to update the platform to enable KID's to be accepted at the point of dealing, as I believe some other platforms do?

[AndaIG]

Hi @NickW-uk

There are no concrete plans at this point, however we will add this on as client feedback on your behalf. 

All the best, 

Anda

[NickW-uk]

On 12/05/2022 at 10:03, AndaIG said:

Unfortunately our shares desk has confirmed we still would not be able to offer US ETFs even in the case that they do have KIDs. There are a few of them that do offer KIDs, however it is also a regulatory requirement that we make them available at the point of dealing. Since we are not able to do this, we are unable to offer them. 

Hi @AndaIG

Is it possible to open a second international IG account for share trading, as a UK retail customer, and have the US ETFs available for trading through that international account?

Edited May 16, 2022 by NickW-uk

[AndaIG]

Hi @NickW-uk

Unfortunately this is not possible for two reasons: We don't offer share dealing under IG International and your account has to be linked to the country were you reside. 

All the best, 

Anda

[ArturG]

I have the same problem. If I look at IG advertising then you promise ETF. But it tuns out to be not quite true anymore after the last changes. So it may be better to search for another platform

 

 

[NickW-uk]

@ArturG I believe all UK and EU platforms will be restricted to only selling UCITS compliant ETF's. I've found the following UCITS US Treasury EFT's listed on IG:

Invesco US Treasury 7-10 Year UCITS ETF
Vanguard USD Treasury Bond UCITS ETF

[ArvinIG]

8 hours ago, ArturG said:

I have the same problem. If I look at IG advertising then you promise ETF. But it tuns out to be not quite true anymore after the last changes. So it may be better to search for another platform

 

 

 

4 hours ago, NickW-uk said:

@ArturG I believe all UK and EU platforms will be restricted to only selling UCITS compliant ETF's. I've found the following UCITS US Treasury EFT's listed on IG:

Invesco US Treasury 7-10 Year UCITS ETF
Vanguard USD Treasury Bond UCITS ETF

Hi @ArturG

Thank you for your post. 

You can find the relevant text here:
https://www.legislation.gov.uk/eur/2014/1286/body

This rule will apply to all UK clients therefore other brokers should comply with the above rules.

I hope that it helps !

All the best - Arvin