I was reading in a forum that we are not allowed to invest in a ISA in companies which are listed as ADRs or ADSs if they are not listed directly in an approved from HMRC stock exchange like Hong Kong. This in my eyes makes NIO ineligible! Can anyone share his/her thoughts about that?
This guy seems to know about this kind of thing.
I’m unfamiliar with ISAs being non-british but if what you say is correct, then NIO being an ADR would be ineligible.
I had a look at some of the HMRC websites a few weeks back and the NASDAQ and NYSE are eligible, I didn’t see anything mentioned about ADRs so I think that they are elegible, hence why T212 offers them.
However, on the other hand FreeTrade do not allow them on their ISA, but it sounds like an excuse to me as T212 does offer them… I am obviously not an expert though.
P.S. I have NIO on my ISA on T212, it’s definitely available, so I guess that HMRC accepts it.
Hopefully someone else can confirm .
Thanks for the replies guys! I saw a post on freetrade that’s why I got curious! I do have NIO on my Trading 212 ISA so it seems that it is fine!
Just looking at the data I have available I would suggest NIO is NOT ISA eligibe.
For ADRs you need to look through to the underlying security (the parent security, NOT the ADR listing).
So although the ADR is listed on the NYSE (would be eligible), the Parent is listed in the Cayman Islands (not eligible).
That’s based on my understanding last time I read the HMRC ISA rules… which was a year or more ago… but that’s my 10 seconds take. Probably worth T212 clarifying.
So I actually looked for this on HMRCs website and could not find it… I would also like to know .
Key section seems to be…
A depository receipt can be held in an ISA providing the underlying shares represented by the depository receipt are in the beneficial ownership of the holder and are themselves ISA qualifying. It is irrelevant for ISA purposes whether the depository receipt is listed or traded on a recognised stock exchange.
So although you’d presume NIO is listed in China… rarely are stocks like this actually legally listed in China primarily. It appears to be officially registered and incorporated in the Caymans. Which is not a recognised exchange. So is not ISA eligible.
Hi Finki, how do you know that it is registered in the Cayman islands?
It seems like the Cayman Islands is a registered exchange:
On the other hand, I don’t know if Chinese stock exchanges are recognised. Hong Kong appears to also be recognised:
Can we get an answer from T212? @George could you help on this?
How did you find the information saying NIO is listed in the Cayman Islands? I’m curious as to finding more information on companies based there.
https://www.barrons.com/articles/6-8-million-american-jobs-arent-coming-back-51594026001 Interesting read here.
Google. You’ll end up on SEC filings. It’s incorporated in Cayman but the difficulty is finding out it’s underlying Listing. It’s parent is quoted as KYG6525F1028 - but I can’t find that ISINs data to verify where it’s traded. If I look at the cayman stock market website I can not find Nio or that ISIN. Cayman is a recognised exchange but that might not be where the stock actually is. Without this step I wouldn’t say it’s isa eligible. Hargreaves, Ajbell and other big brokers agree. That’s not to say they are correct - maybe they are cautious awaiting greater clarity.
Thanks for the info.
I’m not from UK (don’t even know what Isa account is) and I have on my T212 invest platform some Nios. Do you think I have any risk to loose my Nio stocks?
Lose your NIO? How? If you have no ISA purely a Invest then so long as NIO is publicly traded and traded by T212 you can’t “lose” it. You can “lose” the value of it. But you can’t have it taken away from you because of ISA eligibility criteria…since they don’t apply in your case.
Thank you I don’t know what’s an Isa and what’s the difference btw Isa and Invest account, so when I saw the post I just got afraid
Fear not Young Skywalker
Poor communication from Trading 212… I’ve already bought and sold both Sea Limited and NIO shares within stocks and shares ISA this tax year and nothing has been said from them…
Could we have confirmation on this please as a matter of urgency.
I have Nio in my ISA and would like to increase my holding, but I am finding this uncertainty very concerning.