Last year I invested a small sum in a Merrill Lynch Unit Trust - this was advertised as "ISAable" and earlier this year I decided to "convert" it (what is the correct term for this?). Looking at the paperwork last night I noticed that they sold my units at the bid price, then re-bought them for the ISA at the offer price, resulting in fewer units than I previously held.
Is this normal practice for something like this - obviously I misunderstood their meaning of "ISAble".
KotF
In message , KotF writes
ISAble meant that the fund qualified as being able to be held in an ISA if you wished. You cant transfer anything from out side an ISA into an ISA without it being 'sold' into the ISA. It is this transaction which determines the size of your ISA contribution towards your annual ISA allowance.
I would be surprised if they charged you the full bid/offer spread. Many houses will do a transaction such as you describe at a discount.
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