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Distribution of instruments to ISA’s resulting from corporate actions

Certain corporate actions require the distribution of new instruments based on the event type and the event's terms. These new instruments can take the form of Warrants, Contingent Value Rights (CVRs), or interim lines of stock known as Corpact Units. As a holder of record, you qualify to receive the terms of the distribution. HMRC ISA eligibility rules however, will not allow us to post these new instruments to ISA’s. This means there will be occasions where your underlying holding is ISA eligible but the new distribution is not.

 

Which account can I participate with? 

No ISA ineligible instruments resulting from a Corporate Action will be posted to an ISA. 

There are no restrictions placed on Invest accounts. If you hold an ISA and Invest account, any distribution resulting from a Corporate Action impacting your ISA holding will be applied directly to your Invest account.

 

What happens if I don't have an Invest account?

If you do not have an Invest account at the time of the initial distribution, we will put it on hold and you will be asked to create one. We will monitor all new Invest creations and process allocations on a weekly basis to ensure you receive your entitlement.

How will I be notified?

All clients will receive a Corporate Action notification containing the details of the event. If you hold an ISA account only, you will be notified that the new distribution cannot be held within an ISA and you will be asked to create an Invest account.  We will guide you through this process. This will ensure the correct distributions have been made based on your holdings.

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