Account Closing Options & Information
Important information for ISA Accounts:
You are only permitted to open one ISA account a year. If you close the ISA you will lose this year’s tax advantage of the ISA. It is very important to consider the pros and cons of each option available to you. These are presented in the following table:
In-specie transfer
(Transfer the ETFs you bought through GreenGrowth directly to another investment provider without disinvesting)
In-cash transfer
(Sell down ETFs you bought through GreenGrowth into their cash value and transfer that cash to another investment provider)
Withdrawing money to your bank account without investing it elsewhere
(Sell down ETFs you bought through GreenGrowth into their cash value and transfer that cash to the bank account we have on file for you)
GIA
(General Investment Account)
Pros:
You remain fully invested so if the market goes up while the transfer happens you will still benefit.
Cons:
A charge of £1 per asset will be charged but this will be paid for by GreenGrowth Investments Ltd.
Some of your holdings may be in fractional shares. You cannot transfer fractional shares in specie so the fractional part will have to be sold and transferred in cash.
Pros:
No transfer costs.
Cons:
You will not be invested in the market for a while, so if the stock market goes up while you are transferring you may not benefit.
You have to sell down all of your stocks before transferring.
Pros:
There are no costs to selling down and withdrawing your money.
You are fully in control of the process and not reliant on your new provider processing the transfer for you.
Cons:
You will not be invested in the market for a while, so if the stock market goes up while you are transferring you may not benefit.
ISA
(Individual Savings Account)
Pros:
You remain fully invested so if the market goes up while the transfer happens you will still benefit.
You preserve the tax advantages of the ISA.
Cons:
A charge of £1 per asset will be charged but this will be paid for by GreenGrowth Investments Ltd.
Some of your holdings may be in fractional shares. You cannot transfer fractional shares in specie so the fractional part will have to be sold and transferred in cash.
Pros:
No transfer costs.
You preserve the tax advantages of the ISA.
Cons:
You will not be invested in the market for a while, so if the stock market goes up while you are transferring you may not benefit.
You have to sell down all of your stocks before transferring.
Pros:
There are no costs to selling down and withdrawing your money.
You are fully in control of the process and not reliant on your new provider processing the transfer for you.
Cons:
You will lose all of the tax benefits of your ISA and would be unable to open a new ISA in the current tax year – only do this if you are confident of what you are doing.
You will not be invested in the market for a while, so if the stock market goes up while you are transferring you may not benefit.
You have to sell down all of your stocks before withdrawing your money.
How do I conduct an in specie or cash transfer?
You contact your new provider and request an in-specie/cash transfer, as appropriate. They will ask you for the current provider’s (GreenGrowth’s) details including your account number.
Your account number is available on the app – log in, tap on your portfolio, and select ‘Close’ to see details.
For the provider details please ensure that you notify them that your account is held with the custodian, Seccl Custody Limited. If you tell them it is with GreenGrowth they will not be able to complete the transfer.
The new provider will contact Seccl and provide them with the client authority. Seccl will confirm the stock and the new provider will confirm that they accept the transfer of stock (in the case of in specie transfers).
There is a fee for in-specie transfers but due to the circumstances GreenGrowth will be covering this on your behalf. There is no fee for cash transfers.
Warning: this process takes time. It will take your new provider time to open your account and time to process the transfer request. If the request is received by Seccl on or before 16th Jan 2023 the transfer will be completed. However, if it comes in after this date your assets will be sold on your behalf and the proceeds returned to your bank account. Please start the process of transferring as soon as possible.
If you have any questions regarding the transfer or withdrawal or your funds please contact hello@greengrowthinvestments.co.uk and we will be happy to assist you.
