We’ll arrange for your client’s shares to be sold through a stockbroker (The Share Centre Limited). The stockbroker’s commission will be paid by your client and is deducted from their proceeds before reinvestment. The shares are normally sold in the afternoon of the day we receive your client’s certificate(s).
The net proceeds will be reinvested in your client’s chosen M&G fund(s) on the day settlement is received (usually three days after the sale). This means that your client’s shares will be out of the market until we receive settlement for the sale.
You (or your client) will need to complete the following forms:
Share Exchange Authority Form
ISA application form
OEIC/Unit trust application form
Crest transfer form(s)(one for each share being sold)
Read more about our share exchange scheme.
See pages 4-5 of our Important Information for Investors document for a list of which funds pay when.
If your client’s investment needs change or they decide that they’d like to invest in a different fund, you can switch between funds on their behalf at any time and keep their investment in the same product. This can only be done on behalf of your client on the OEIC product, for an ISA the instruction needs to come from your client.
Switching between funds may incur a charge. Please call customer relations on 0800 328 3191 (8am – 6pm) to find out more (including minimum switching limits) and to request a switching pack free of charge.
Unless you specify otherwise, your client will automatically be allocated the same share/unit class that they currently hold in the new fund. However, if they want to change the share/unit class, you must let us know.
Please note that switching between funds within an OEIC or unit trust is a chargeable event for capital gains tax purposes.
Find out more about switching between M&G products and funds
We pay renewal commission once a year in November, following the accrual date of 30 September.
You can withdraw all, or part, of your client’s investment at any time by phone or by post. However, we must receive your withdrawal instruction before 12 noon (the valuation point) on any business day. All withdrawals are subject to minimum limits, which are available from our Customer Relations team on 0800 390 390. We will also require written confirmation from your client that this was their intention. For the ISA product we will need the client to instruct us, this can be over the telephone or in writing.
We can make payments directly to your client’s bank account by BACS on request. When you instruct us, you must provide your client’s bank account number and sort code.
If your client does not have a valid Direct Debit mandate in place that M&G has claimed on within the last 12 months, we’ll also need one of the following:
- An original bank statement dated within the last three months
- A blank cheque that has been marked as void for the account that your client wishes to use
If we can’t confirm these details in time to make payment electronically, we will send a cheque to your client’s home address
The proceeds of sales of shares are released on the fourth business day after the valuation point following receipt of your instruction. Alternatively, we’ll release the proceeds once we receive information we may have requested when you sent your withdrawal instruction. We’ll normally pay your client by cheque to their home address unless otherwise specified. See below for specific rules relating to the M&G ISA and M&G Junior ISA:
The M&G ISA
Proceeds will be paid no later than five business days after we receive your instruction or after we receive further information we requested when you sent your withdrawal instruction. We’ll normally pay by cheque to your client’s home address unless otherwise specified.
Under the current rules for debit card payments, if a withdrawal is requested within 30 days of a purchase by debit card payments, we will sell the shares in accordance with your instructions and hold the sale proceeds relating to the subscription via debit card in a client account until the 30 days have elapsed. Withdrawals have no effect on the subscription limits. Once you have reached the limit for the tax year, you can’t make any further subscriptions, regardless of withdrawals.
The M&G Junior ISA
You can’t normally make withdrawals from The M&G Junior ISA unless the child is terminally ill. In this case, we can only take instruction from Her Majesty’s Revenue & Customs (HMRC) to sell investments held in an M&G Junior ISA. You can make a withdrawal on behalf of your client in the event of the child’s death.
A bare trust is a simple type of legally binding trust. In a bare trust an individual holds assets, such as shares in an OEIC fund, on behalf of someone else. It is a formal and legally binding way of registering an investment you have made for someone else.
At M&G, we believe that in order to avoid any potential tax issues, it’s safest to encourage your client to make a formal declaration of trust to HMRC. This can be arranged through a professional Adviser, such as a solicitor, who normally draws up deeds.
Our brochure talks you through everything you need to know about taking care of a client’s investments when they die. We guide you through the crucial first steps, including:
- How to notify us in writing
- Which documents we’ll need to see
- Which procedures to follow for joint holdings, sole holdings and ISAs
- How to obtain a Grant of Representation
- How to transfer your client’s investments to their beneficiaries
- How to sell your client’s investments
Download our brochure to find out more:
When an M&G investor dies (includes stock transfer form)