HSBC not allowing me to top up NAIT or WITAN

[dmukgr]

Since the share splits earlier this year in both North American Investment Trust and Witan, the buy option in my HSBC account is not available. I figured this was a mistake that would correct itself but on phoning them up today I was told that they have made the decision to no longer allow these stocks to be purchased - something to do with them being investment trusts (and possibly changes to key documents and charges).

This doesn't seem right to me, but the person who answered the phone was adamant. Presumably this will happen for each Investment Trust that does a split going forward. Now, I have always found splits to be a pain, but this is a whole further complication.

Do I need to change provider? I always thought going with a big bank was a sensible option.

Any ideas anyone?

Thanks.

[Alaric]

Do I need to change provider?

If HSBC are going to be incompetent in failing to understand that share splits change nothing apart from making a decision to purchase a fixed amount in sterling a little more likely to use all the available funds, then perhaps yes.

Perhaps you could write to NAIT and WITAN to express your disappointment that HSBC have reduced the liquidity in their shares.

[DavidM13]

Since the share splits earlier this year in both North American Investment Trust and Witan, the buy option in my HSBC account is not available. I figured this was a mistake that would correct itself but on phoning them up today I was told that they have made the decision to no longer allow these stocks to be purchased - something to do with them being investment trusts (and possibly changes to key documents and charges).

This doesn't seem right to me, but the person who answered the phone was adamant. Presumably this will happen for each Investment Trust that does a split going forward. Now, I have always found splits to be a pain, but this is a whole further complication.

Do I need to change provider? I always thought going with a big bank was a sensible option.

Any ideas anyone?

Thanks.

I would ask to speak to a manager and get the exact rationale in writing. This just sounds bizarre and frankly wrong! But he didn't mention the stock split being the issue or did he? I wonder if the stock split triggered something else in their process that marked these as no longer available. I would hope you have just dealt with an employee who doesn't really understand what is going on and there is a more sensible explanation for this.

I would definitely call back and get a response that actually makes sense.

[dmukgr]

Yes, phoning back another day is definitely in my plans... but the lady I spoke to put me on hold twice to check and said that as a result of the stock splits they had decided to no longer offer that stock - something to do with having to update terms which they didn't want to do. It is all very odd.

I keep reading about going the low cost tracker fund type route lately and this sort of hassle is making me consider it more seriously.

[DavidM13]

Yes, phoning back another day is definitely in my plans... but the lady I spoke to put me on hold twice to check and said that as a result of the stock splits they had decided to no longer offer that stock - something to do with having to update terms which they didn't want to do. It is all very odd.

I keep reading about going the low cost tracker fund type route lately and this sort of hassle is making me consider it more seriously.

That is just embarrassing for an institution that size. I wonder if they need a new KID and have trouble sourcing it or something?! Witan had a stock split on 28th May 2019 and lo and behold a new KID was released on that day.I wonder if they cant get hold of it or import in to their systems somehow Maybe we can fax it to them



https://www.fundslibrary.co.uk/FundsLibrary.DataRetrieval/Documents.aspx?type=packet_fund_unit_doc_priip_kid&docid=ebe66a35-0154-4c9d-a4c7-2df3a60321fb&user=jHZZ%2fYCQMYpMy7MwVUWM7DsIMI2%2bD24wiv1pnJGkCkA%3d

[dmukgr]

I sent them a message a while back and have just seen the reply...

"I have looked into your enquiry and confirm North American Income
Trust (NAIT) is not available for purchases and this is because
the Cost and Charges Disclosure Document (C&C) is not available.
Due to regulatory changes, HSBC cannot allow new purchases
without this document being available to you.

Which is why the system will not allow you to purchase NAIT. We
have not been made aware of when the C&C will be updated."

Does anyone know anything about this?

[DavidM13]

I think this may help.

https://www.fca.org.uk/publications/mul ... w-findings

I am no expert in this area but as far as I see there are two documents that are important. The KID (Key Investor Document) and the EMT (European MiFID Template)

For NAIT, the most recent KID I can see is 11/06/2019. The most recent EMT data I can see for this fund is 31/10/2019. So it *Seems* that the fund is providing the documentation but HSBC are not picking it up from wherever they are meant to pick it up from and therefore mistakenly believe it is out of date

I may be wrong



The costs and charges disclosure requirements in MiFID II apply in addition to the Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation that requires firms to produce the standardised Key Information Documents (KID). Products that are Undertakings for Collective Investment in Transferable Securities (UCITS) are currently exempt from the PRIIPs Regulation. This means UCITS manufacturers should continue to produce a Key Investor Information Document (UCITS KIID). MiFID II costs and charges disclosure rules apply to investment firms providing services both for PRIIPs (which are financial instruments) and UCITS.

[b]When firms provide an investment service for a UCITS, MiFID requires them to disclose costs and charges information which may not be included in the UCITS KIID. In this case, Article 50(4) of the MiFID Delegated Regulation requires the firm to liaise with the UCITS management company to get the relevant information.

The MiFID II costs and charges requirements necessarily require investment firms to liaise with product manufacturers to ensure that consumers have accurate costs and charges disclosures. Manufacturer firms should ensure they clearly and consistently disclose their products’ costs and charges to distributors. Distributor firms should ensure that they are disclosing manufacturers’ costs and charges as clearly and consistently as they disclose their own costs and charges.[/b]

[Alaric]

The MiFID II costs and charges requirements necessarily require investment firms to liaise with product manufacturers

I rather hate that term "product manufacturer" although I think it home grown from the FCA or its predecessors rather than an EU concept.

By my understanding an Investment Trust is a Company that invests in the shares of other Companies. It's not something made in a factory and misleading to use an inappropriate form of words.