Schwab Closing Access to US ETFs for Americans in the EU – Creative Planning Can Provide an Alternative

Charles Schwab is informing it’s retail clients residing in the UK and the European Union (EU) that their access to US exchange traded funds (ETFs) will be further restricted. They will no longer be able to buy US ETFs under the “professional” elective designation as of February 10, 2022. The professional elective allows an exemption to the EU Packaged Retail and Insurance based Investment Products legislation (PRIIPs), part of the EU’s 2018 MiFID II regulations. The PRIIPs regulations do not allow the distribution of US ETFs directly to retail investors resident in the EU. Schwab clients who are working with an advisor – like Creative Planning and its international wealth management team, Thun Financial – will not be restricted and can still own and purchase US ETFs under an exception granted in the MiFID II regulations.

Creative Planning and Thun already use Schwab as a custodian and will be able to provide a seamless transition for individuals impacted by the change. We also have relationships with Fidelity and Pershing if you are interested in making a change. When working with Creative Planning and Thun, we can typically use local addresses for account opening and remove many of the restrictions that individual investors encounter when trying to invest from outside the U.S.

We welcome an opportunity to discuss how we can help with all your cross-border investing and planning needs. You may call us at +1.608.237.1318, or contact us on the web.