Provision requirements
The international PPB provider will typically require the following in order to undertake the transfer:
A completed stock or Certificateless Registry for Electronic Share Transfer form. The existing custodian will be able to confirm their specific requirements.
The existing custodian’s name, address and contact details.
A copy of the existing custodian’s latest valuation, confirming the Stock Exchange Daily Official List (SEDOL) or International Securities Identification Number (ISIN) for the specific shares held.
SEDOLs are assigned by the London Stock Exchange and are seven characters in length, consisting of two parts: a six-place alpha-numeric code and a trailing check digit. An example of an SEDOL could be B4T3BW6.
ISINs are 12 characters in length, consisting of three parts: a two-letter country code, a nine-character alpha-numeric national security identifier and a single-digit check. An example ISIN might be JE00B4T3BW64.
Once the existing custodian receives a valid instruction to transfer the shares this can typically be completed in 3-5 days, although there are no global standards and custodian service standards can vary. That said, the existing custodian will be able to confirm their service standards, so expectations can be managed from outset.
It is important to note that an in-specie transfer could lead to a Capital Gains Tax (CGT) liability, if applicable to the client in the country where they reside, and if there are gains on the shares (or other acceptable assets) transferred.
Following the in-specie transfer any future switches within a PPB will not normally be liable for CGT.
I would suggest that where advisers are unsure, they should always seek specific tax advice with regards to their clients’ individual circumstances.
