Broker converted ETF during transfer.

[paulnumbers]

Hello,

About a year ago I transferred a SIPP from Fidelity to HL. I held an Ishares S&P500 ETF in it. Months later I noticed that post-transfer HL was showing CSPX, the USD priced version, rather than CSP1, the GBP version. I assumed I had originally made the error & bought the wrong one

Anyway, recently when doing an IWEB transfer, I noticed the following on their website.

Please Note, if the ETF you are transferring into us can be held in multiple currencies, we may default this to the USD version

I was surprised to see this, but now see that it must have gotten converted during the transfer.

My question is, how is this even possible? I had assumed an ETF with a different currency was fixed in that guise. Is this not the case?

I'll give the broker it's in now (II) a call on Monday to see if they can convert it, but was interested if anyone can explain what's happened here.

Thanks,
Paul

[mc2fool]

You transferred from Fidelity to HL, are quoting a note from IWeb to which you've also recently done a transfer, and now the ETF in question is in II, who you are going to get to sort it out? Phew!

You say that after the Fidelity to HL transfer you "assumed I had originally made the error & bought the wrong one" but don't you have a contract note so that you can check?

I must admit to being a little surprised at the IWeb note (got a link to that?). I know yours is in a SIPP so CGT won't apply, and I'm aware that changing between classes of an OEIC/UT isn't counted as a disposal for CGT, so can we then assume that applies to currency variants of an ETF? Otherwise the broker doing that could potentially land you with a CGT bill. Not that I think they should do it anyway.

Also, I note it says "we may default this to the USD version", which implies that you can ask for it not to be. Although I have had a case before of IWeb having only the USD version of an ETF available and my having to ask them to set up the GBP version on their systems (which took a bit of back and forth and some time to get to happen...)

[scrumpyjack]

The advantage for the broker in bunging you into the USD version is the subsequent exchange conversion fees they get when you do anything with the holding, and possibly on the dividends.

[paulnumbers]

>You transferred from Fidelity to HL, are quoting a note from IWeb to which you've also recently done a transfer, and now the ETF in question is in II, who you are going to get to sort it out? Phew!

Well indeed.

>You say that after the Fidelity to HL transfer you "assumed I had originally made the error & bought the wrong one" but don't you have a contract note so that you can check?

I've since checked it, I did buy the correct one.

>I must admit to being a little surprised at the IWeb note (got a link to that?).

https://i.imgur.com/QL0Tx67.png

>Also, I note it says "we may default this to the USD version", which implies that you can ask for it not to be. Although I have had a case before of IWeb having only the USD version of an ETF available and my having to ask them to set up the GBP version on their systems (which took a bit of back and forth and some time to get to happen...)[/quote]

Yes, if I were with IWEB for this it could be fixed with a phone call. I'm not, I'm now with II. Naturally I'll call them and discuss, but really it's not their fault, that's with either HL or Fidelity. Fortunately I have no desire to sell any time this decade so if it can't be resolved I'll worry about it later.