Merrill Lynch HSBC, the direct investing and banking joint venture, is to launch a no-load Isa and P...
Merrill Lynch HSBC, the direct investing and banking joint venture, is to launch a no-load Isa and Pep in the weeks running up to Christmas.
The product, which is aimed at the direct market, will enable investors to buy UK and US listed securities using American Depository Receipts known as ADRs.
Also available through the no-load Isa will be the recently launched Global Growth Protected Investment Product which will track a basket of indices: the FTSE 100, the S&P 500, the Dow Jones Eurostoxx 50 and the Nikkei 225. It offers capital protection over a three year period, if held to maturity. Total potential return is capped at 70%.
Victor Dodig, Merrill Lynch HSBC UK managing director, said further products would be made available through the Isa and Pep, including funds when the joint venture moves to create a fund supermarket next year.
Trading, which can be done online or over the telephone, carries a flat fee of £19.95 per trade for transactions. The company also offers clients who face exit charges from other Pep and Isa providers a rebate of up to £100 to cover any share transfer penalties, which Dodig said can be as high as £10-£15 per line of stock.
Dodig, who took part in the negotiation of the joint venture, said the current pause in direct equity trading would not deflect the sector's long term growth.
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