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[Raul (Ann Onymuz)]

@Viktor @Freetrade_Team

Blog post on ADRs please?!

Meanwhile we can check these

Understanding American Depositary Receipts (ADRs): Types, Pricing, Fees, Taxes

@adavid

Was just reading about it this morning. They are ADRs (American Depository Receipts)

The International Investor – 19 Jul 11

Holding foreign stocks in an ISA or SIPP

Many UK investors don’t realise that a personal tax wrapper – ie an Individual Savings Account (ISA) or a Self-Invested Personal Pension (SIPP) – can be used to shelter foreign shares from tax. Mos…

@SebReitz

ADRs carry some disadvantages/fees. So it’s better to own the actual share, not the ADR. https://topforeignstocks.com/2016/05/13/adr-fees-what-is-it-and-why-it-is-important-be-aware-of-it/

@Nicola

One other thing to bear in mind when looking at investing in US stocks in your ISA is ADR’s.

Firstly, what are they? An American Depositary Receipt is a way for non-US companies to allow trading in the US market, they are owned and issued by US banks.

Can they be held in an ISA? This all depends on the underlying company and where it is traded, it is not based on where the ADR is traded (eg NYSE, NASDAQ). If the underlying company is traded on a recognised exchange then you can invest in your ISA, but if it isn’t then you can’t.

So, if you buy an ADR for a Canadian company which is listed on the Toronto stock exchange, that can go into your ISA. But, if you buy an ADR for an Indian company, where there isn’t a recognised exchange, this can only go into a GIA.

From a Freetrade’s blog post:

You can invest in everything in our universe, except certain investments such as Chinese stocks, like Alibaba, Ctrip and Baidu, or the Israeli company Teva Pharmaceuticals. These trade as ADRs on US exchanges and aren’t ISA eligible.