Limited ISA shares

Why do I keep on finding shares that I want to buy unavailable for my ISA account, but available for a general investing account?

Given that I pay a monthly fee for an ISA, I expect to have a better product range than a free account, not worse.

Does anyone know the rationale for this?

Thanks

Do you have an example?

I think UK law is probably the big one.

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NIO, LI are two that came to mind

LI and NIO are both ADRs which aren’t eligible in an ISA.

@Cameron‘s link should provide more info

(Maybe Freetrade could make it clearer what stocks are ADRs in the app @Viktor? They don’t a appear to say so)

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That would make sense, but I can buy China Mobile which is also a US listed ADR

Yeah agreed it should be clearer what is an ADR. I think just having an ISIN somewhere prominent would be good.

I’m not 100% up on the conditions, but the underlaying company has to be eligible. So while China Mobile is, NIO isnt because the underlaying company may not be eligible.

More information in general would be useful, including an ISA eligible indicator i think

ADRs aren’t automatically excluded, what matters is the exchange of the underlying.

For example ASML is an ADR but the shares are listed on a recognised exchange so it is ISA eligible.

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thanks guys

… and if you get ISA eligibility wrong then HMRC can revoke your ISA manager status… or you can run the PR gauntlet of having to run an ‘ISA Repair’ process… which is costly and an admin headache… like T212 had to recently when they misclassified about 90 stocks… but still misclassify ‘a lot’

… FT by comparison are pretty good… but still misclassify a good handful.

UNSURPRISINGLY (:stuck_out_tongue_winking_eye:) FinKi make an API that auto tracks HMRC ISA rules and identifies if a stock (adr, warrant, right, gdr, ord, anything) is Eligilble… I don’t think you can get that service anywhere else… if you can I’d reckon it’s wrong. (Who really tracks what tier a Russian stock is listed on or what reporting accounting standards a Swiss stock adheres to? Yes, they’re real examples to demonstrate the crazy level of detail you need for every stock on every exchange)

Hello@finki.io

ISA rules are complex and ever changing.

Why bother running it in house? Too much hassle.

ISA-eligibility-as-a-service

#nerd
#dull

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