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mtbcI had generally been a happy customer of Charles Schwab. When I originally funded my brokerage account they clearly didn't understand how UK retail banking works but that caused no real problem. Effective yesterday they have gotten around to applying the EU's Packaged Retail and Insurance-based Investment Products Regulation which is preventing me from buying US-domiciled funds. I was disappointed to receive a letter about the change only on Tuesday so they gave me little more than a trading day's notice. Luckily that was enough for me to adjust my position a bit; it helps that the US markets are still open in what for me here is the evening.
The issue is that no US-domiciled funds offer the Key Information Document required by the EU. Their regulation is well-meaning consumer protection law but (I'd be glad to be corrected on this) any fund that it lets me buy as an EU-resident retail investor would have the IRS seeing it as a Passive Foreign Investment Company which would carry heavy tax penalties. The EU's attempt to force me toward informed consent instead steers me away from all funds. The other obvious investment alternatives are more costly and risky. As a consumer I thus don't feel much protected by this regulation.
Charles Schwab further distinguished themselves by inviting me to a
The issue is that no US-domiciled funds offer the Key Information Document required by the EU. Their regulation is well-meaning consumer protection law but (I'd be glad to be corrected on this) any fund that it lets me buy as an EU-resident retail investor would have the IRS seeing it as a Passive Foreign Investment Company which would carry heavy tax penalties. The EU's attempt to force me toward informed consent instead steers me away from all funds. The other obvious investment alternatives are more costly and risky. As a consumer I thus don't feel much protected by this regulation.
Charles Schwab further distinguished themselves by inviting me to a
Navigating Today's US Marketevent finishing just hours before their block on buying US funds came into effect. Naturally, in the event of Brexit, Her Majesty's Treasury propose that the EU regulation be adopted into UK law so there isn't even a silver lining there.
