I have recently discovered that US brokers no longer allow EU residents to buy US domiciled ETF's.
Did anyone confirm this? I was hoping that transferwises new Borderless accounts would allow at lot of the charges from sending money into Firsttrade to be reduced.Hi - When did this happen? I've a firstrade account and hold US ETFs - didn't get any notification about any change in regulation / policy...
I think it’s due to the PRIIPS regulation which came into force at the beginning of the year. As far as I am aware ETFs have to produce a key investor document. American etfs are not bothering. There may be other reasons (eg MIFID 2 also came into force this year) but I’m not sure about the effect of this.
Interactive investor are blocking purchases. Other platforms are blocking non UCITS.
Correct. US ETF's are obviously for the US market and so are not subject to EU regulation. The fund manager is not going to comply with legislation in countries they are not targeting. They have European versions of all the funds which are all in the gross roll up, deemed disposal regime.
Hi Steven,
If I have a large enough lump sum to invest - is it possible to purchase US domiciled ETF's without requiring the key investor documentation?
Investing in European domiciled ETF's - with deemed disposal every 8 years - is not able to take advantage of the power of long term compound interest buy and hold investing.
Thanks
This thread from the best buys has a good summary of various options: https://www.askaboutmoney.com/threads/summary-of-stock-market-investment-costs.194304/
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