Certain assets can't be held in an ISA

Hi :blush::wave:

What are the regulatory criteria for assets that are not allowed to be held in an ISA*

*With exception to REITs, which I’m aware FT is working on.

As someone who not only works in financial services, but works in the stocks and shares industry I’m well aware of the varying degrees of regulations.

It’s more for curiousity and to gain a better understanding.

US ADRs, as far as I’m aware.

The main concept as it pertains to Freetrade is recognised exchanges. The underlying asset (not the security itself) must be a listed on a recognised exchange. This means an ADR/GDR is valid only if the underlying shares are valid (i.e. listed on an exchange recognised by the UK gov).

The recognised exchanges are listed here:


As @Cameron says above, it depends on whether the underlying security is traded on a HMRC-recognised exchange. Lots of ADRs are actually Isa eligible, Swiss pharma company Novartis (NVS) is one example.

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