ETfs & CREST Accounts

[taytoman]

I have just been told that if you wish to purchase Irish or UK Domicilied ETFs (eg iShares), a CREST account must be opened, at 50 euro per annum. Therefore, if you invest 10K in ETFs, you are paying 0.5% annual charge, on top of the ETF charges.

Q- Is this correct, and are there large & stable european etf providers that one can purchase instead that provide paper certs.

Want to Buy FTSE NAREIT Global or Developed World ETF

 

[PMU]

When you have a CREST account, the shares are in your name, i.e. are not in a nominee a/c, you can confirm your holding independently with Euroclear, get dividends paid directly to you to your bank a/c, get the annual report sent to you personally, get notified of changes to rules and can vote in AGMs/EGMs, etc. Because of the Morrogh stockbrokers case, in which the High Court decided that the receiver was entitled to be paid out of client assets held in nominee a/cs, i.e. the Court did not distinguish between the assets of W&R Morrogh and the clients’ assets, I think it would be prudent to settle your ETFs in a CREST a/c (I do so). AFAIK, all ETFs are dematerialized products so you cannot get paper certs.