Account dealing

Where you choose to sell a specific investment and are selling more than 90% of its value, we process this as a unit-based deal (the reason for a 90% tolerance level is answered in the question below). Due to forward pricing, this could mean the deal is priced with more or less than the notional value at the time the instruction is submitted.

• If it’s more, we place the requested amount into the ISA with the balance remaining in Product Cash within the Investment Account
• If it’s less, you could have a shortfall in the ISA funding. However, if there is shortfall, our system will look to fund this from any available balance within Product Cash in the Investment Account.

The reason for implementing a tolerance is to avoid deal failures where assets drop in value. For example, if a client has £1,000 in a fund and requests a sell deal of £950 (95%) and the price drops so that their holding is only worth £940, then the deal cannot be executed. This is a common approach across platforms. 

The tolerance is set at 90% so that it is still effective in periods of extreme market volatility. It’s still possible to achieve a sell of between 90% and a 100% of the value of an asset, it just needs to be done on a unit basis. This will of course mean the client won’t know the exact amount realised until after the relevant pricing point.

Where an Investment Account is in joint names, you can process an individual Bed & ISA instruction online for each holder.

Where the ISA holder is not a holder of the Investment Account, you will need to use the 'Bed & ISA for a third party form'.

You will also need the clients owning the source Investment Account and the target ISA account to complete and sign a Deed of Gift form which should be returned with the Bed & ISA third party form.  If you submit via upload and send you should use the ‘Instruction Form’ Section for the Bed & ISA third party form and upload the Deed of Gift form as a supporting document.

Deed of Gift form

This is not available through the Bed & ISA process. However, you can sell from the Investment Account to the Cash Management Account (CMA). When the money has settled, you can then phase an amount into an ISA from the CMA as a separate instruction.

If the client’s Investment Account is worth less than their available ISA allowance, it is possible to ‘sell all’ of the Investment Account for investment into the ISA. Please watch this video for guidance on how this can be done online.

This will depend on the value of the Investment Account.

If the Investment Account has a value substantially above the amount you want to transfer into the ISAs, then you can place the transactions one after the other.

If the Investment Account value is close to the total amount you want to move into the ISAs, then you may want to organise one Bed and ISA first and let this transaction settle to see what is remaining before you organise the Bed and ISA for the other holder. Alternatively, you could sell to cash, wait for this to settle and then process both Bed and ISA instructions. Care should also be taken where you are selling near to the full value of a fund on the first submission.

You can easily run a capital gains report at client level prior to submitting a Bed and ISA instruction.

Watch here how to run a capital gains report for your clients.

Watch here how to carry out a Bed and ISA instruction.

If you are selling funds from a client’s Investment Account into an ISA which is linked to a model portfolio, then the funds from the Investment Account will automatically be spread across the model portfolio in the ISA. The option to buy back the same funds as sold in the Investment Account is not available. Should you wish to do this, then please open a new ISA account on behalf of the client.

Should you be looking to take a fee for this transaction, please do so through the ‘Pay Specified Fees’ option.

Once the Bed and ISA deal has been placed, the sell deal is placed at the next available dealing point if submitted online. If submitted by paper, this will be processed at next available dealing point following receipt of the application. The buy into the ISA account is processed once the sell deals are priced. This can vary depending on the investment being sold. If you have sold to cash, and you want to use that cash to buy into the ISA, you will need to wait for cash to settle before you can place the Bed and ISA instruction.