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Question

What is Automatic Dividend Reinvestment?

Answer

The Automatic Dividend Reinvestment (ADR) service allows you to reinvest any cash dividends received from eligible UK equities back into the issuing company. The ADR service cannot be specified for individual holdings, it is applied to all holdings across your account. Please also note ADR will only take place if a Scrip option not available.

To qualify for Automatic Dividend Reinvestment:

• You must have a reinvestment marker applied to your account. This can be requested by telephoning us on 0800 279 6551 / 0141 352 3909 or by sending a request via secure email by logging into your account and selecting Contact Us
• You must hold at least one share in your portfolio from the issuing company on the day the dividend is credited to your account.
• The dividend received needs to be over £10.00
• The balance remaining after any overdue fees/overdrawn positions have been cleared is greater than £10
• The account is not in a the process of being closed
• The account has no dealing restrictions
• The account has no unsettled deals outstanding; and the account has an active Cash Management Service.
• You need to have an active Cash Management Service (CMS) on your account. CMS enables you to hold cash within your account, therefore giving you the ability to trade immediately with the cash available.
• The stock must be ADR Eligible.

*Some stocks are not eligible for ADR - this is due to the OIS category - (other international settle). This restriction is Barclays imposed. This means the stock has certain restrictions on who can hold the shares for various reasons which include UK residency. As ADR is processed as a bulk deal and not at client level. We are unable to offer ADR on these stocks as we could in effect place the deal for a restricted client.

Please note that due to the recent change in French Financial Transaction Tax (FTT) Automatic Dividend Reinvestment will not be processed for clients receiving dividends on French Stocks or Crest depository receipts incorporated in France.

The ADR service is available on the following accounts:

• MarketMasters
• Investment ISAs
• SIPPS
• Company Dealing Accounts.

This service will not be available on Managed ISA's, Advisory or Corporate Services (there is an existing automatic dividend facility on Corporate ISAs, but this facility reinvests all dividends received into the sponsoring company's shares, regardless of the stock the dividend was paid on).

 

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