IE allows the ability to rebalance, meaning sell some shares and buy others with the proceeds, all on one day. However, if I sell some shares, then want to transfer the cash to another pot to buy other shares, I have to wait for the sale to settle before moving the cash out. It’s a huge frustration to have keep money out of the market for several days because of this. So why is it the case? I can see no reason for this, as the pots can (and should) be entirely virtual.
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We’re lucky IE let us have 95% immediately, many other platforms let you have 0 until the sale of funds have settled.
Many providers let you reinvest 100% immediately. Also, with IE, if you are transferring the proceeds between pots (as I stated), then you need to wait for the trade to settle. You can reinvest 0% until then.
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Hello!
Thank you for your feedback.
You can’t reinvest your cash when you are transferring between portoflios because the process involves reallocating funds.
Unlike reinvesting within a portfolio, our platform requires the sell orders to fully settle (T + 2) before the cash can be moved to ensure compliance with MiFID regulations.
You can check our order execution policy here
If you have any further questions, please do not hesitate to contact our support team via email: support@investengine.com
Please could you share a link to these? Many thanks.
I’ve just had a quick scan through the EU’s MiFID II rulebook, trying to find an article which might relate to what you said about reallocating funds, but it’s a long document and I couldn’t find it.
Are you able to share the particular article that explains why a sale followed by a buy using the proceeds is considered differently if the buy occurs within a different pot from the sale? Many thanks. TBH, I find it surprising that such legislation would make any reference to pots or portfolios, since these are just a way of organising assets within a particular account, hence my interest.
Yes, the ‘lesson’ does appear to be to only run one ‘Portfolio’ 