How the scheme works
Your client will need to complete the following forms:
Share Exchange Authority Form
ISA Application Form
OEIC Application Form
Crest Transfer Form(s) (one for each share they are selling)
We will also require the following:
- Cover letter
- Individual share certificates
- Current passport or driving licence
- Bank statement or utility bill
Then send them to:
M&G Share Exchange, Oxford House, Oxford Road, Aylesbury, Buckinghamshire, HP21 8SZ
Shares will be sold by The Share Centre Limited on your client’s behalf at the prevailing market bid price on the day the documents are received. The proceeds of the shares, less any commission payable to The Share Centre Limited, are passed on to M&G with your client’s investment application form(s).
The money is used to purchase shares/units in an M&G fund or funds, either inside or outside of an ISA wrapper. If your client chooses to invest the total value of the proceeds from the sale of their shares with M&G, we will send them a Contract Note, Welcome Brochure and everything they will need to know about investing with us.
If they choose to invest only part of the proceeds from the sale of their shares with M&G, or if the proceeds generated from the sale of their shares, which exceed their ISA limit, are to be invested outside the M&G ISA, we will send them a Contract Note, Welcome Brochure, a cheque for the excess funds from the sale of their shares or their balance certificates, and everything they will need to know about investing with us.
The following charges are applied to each individual stock to be sold, rather than the total value of all stocks sold.
- 1.0% commission on the first £5,000 of the transaction value of each stock
- 0.5% commission on the next £5,000 of transaction value of each stock
- 0.25% commission on the remainder of each stock
There is a minimum charge of £7.50 per stock sold.
Any additional expenses which may be incurred when delivering the securities or registering them will also be paid by your client. For example, a Stock Exchange Panel of Take-overs and Mergers (PTM) levy of £1 is payable on any transaction in excess of £10,000. The buyer of the securities will pay any Stamp Duty.
Key features of the Scheme
Exchanging shares for reinvestment in an M&G OEIC or ISA counts as a disposal for capital gains tax (CGT) purposes. You should advise your client accordingly if you think they may have a CGT liability.
Your client cannot invest in an investment trust through our Share Exchange Scheme outside of the M&G ISA. Any small amounts of sales proceeds above their outstanding ISA limit for this tax year will be refunded to them. Balance certificates will be provided for any remaining unsold shares.
The M&G Share Exchange Scheme only applies to shares and gilts listed on the London Stock Exchange. We reserve the right to refuse to sell any holding where we consider there could be problems in arranging sale or delivery. Please therefore ensure that all certificates contain up-to-date details.
Your client should also be aware that to sell shares on the market there is a minimum commission fee. If the potential value of the sale does not equate to that minimum, we will not be able to arrange the sale of those shares.
When shares have been sold, there can be a delay before the share register reflects the change in share ownership. Consequently, your client may receive a dividend or rights issue that is due to the purchaser of their shares. Unless they have sold the shares exclusive of such dividend or rights issue, they may receive a claim for payment which they will be required to settle.