New to all this, but from what I understand there is a change in the law and IB might be required to stop selling US ETFs (namely Vanguard VT) to us, Swiss residents from Jan 2020.
Did I misunderstand, or is there no way anymore to buy US ETFs from Switzerland with IB?
This is pure speculation by somebody who is making money with clicks.
Nobody (except the people at IB, who wouldnât tell) knew exactly until two days ago.
Now it is 2020 and IB still lets you buy US ETFs.
I am not making any money with clicks on this articleâŠ
And this is not pure speculation since these laws are going into effect and DEGIRO actually applied them earlier than they should have. In the article, I do not still that IB will stop, just that they may stop which is something that was also discussed at length on this forum.
My understanding is that, if FinIA/FinSA indeed impacts IBâs Swiss customers, the provision that requires funds to provide a KID wonât take affect until January 1, 2022.
Hi there â I am new around but just wanted to provide my point of view on this question.
Although I have no specific knowledge of this particular field of the law (i.e. FinSA and FinIA) and no particular information from IB, I can confirm that not much should change before 1 January 2022, as mentioned by Mustachioed.
It is very customary to have transitions periods when a new Swiss law becomes applicable. In this case the concerned companies often donât do much before the end of the deadline.
Besides, the Key Investor Information Document (KIID) seems to be a rather simple document of three pages that any junior lawyer might create and would not require much investments/costs from a legal point of view for the concerned companies. Furthermore, these requirement are stemming from international regulations that the FinIA and FinSA are only complying with. But as I mentioned, I am not a specialist of this industry so I might miss something important.
For persons reading French, here is the reasoning of the Federal Council regarding the requirement to implement a KIID.
US domiciled ETFs have made it clear they wonât provide them (those providers have UCITS versions of their ETFs marketed for the EU). But anyway it very likely wonât matter, thereâs so may carve-outs in the swiss law (reverse solicitation, increasing existing positions, foreign brokers, âŠ).
(That said regardless of legislation, thereâs nothing preventing a broker from stopping to offer them, similar to Degiro)
For information, I asked and receive this answer yesterday from IBâs client service:
âSwitzerland has implemented a regulation similar to PRIIPS and therefore Swiss residents classified as Retail investors cannot trade US domiciled ETFs.â
Obviously they did not, as Sweden is subject to PRIIPS proper - which as a EU regulation becomes immediately enforceable, without needing to be transposed into Swedish law.
Whereas the wording of a regulation âsimilar to PRIIPSâ indicates a (non-EU) country where the EU PRIIPS regulation is not in force.
Two days ago, I was still happily buying VT.
I am listed as retail client, though âhas implementedâ and âcannot trade US domiciled ETFsâ sounds like I already should not have been able too.
I am pretty certain trading involves buying just as well as selling.
Also, for this to make sense, they naturally have to let you sell the US shares you already own at some point.
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