CA CIB FIN SOL – XS2387182871 – BPTKD51
The documents you attached cover what most of the structured product factsheets cover. There confirmed that the products were issued as a type of linked note (so a security for ISA purposes) and they confirmed that Credit Agricole CIB was the issuer of the linked notes.
The ISA regulations (and ISA Guidance) don’t make any reference to ‘Structured Products’, possibly because there’s no legal definition as to what these are. Most of these types of structured products are issued as either a note or certificate (like this one – structured linked notes), which is treated as a type of security.
So, for ISA purposes, they would have to meet the ‘qualifying securities’ criteria. This means that they would have to meet the ‘listing’ requirement which is satisfied as long as the security itself or the shares in the issuing company are listed on a recognised stock exchange or traded on a recognised stock exchange in the EEA including the UK. Nothing on the factsheet suggests these will be listed or traded on a recognised stock exchange.
In most cases, the ISA qualifying securities rules mean that either the security itself or the shares in the issuing company need to meet the ISA listing rules, there is a third possibility, where a security is issued by a company which is a subsidiary (at least 75%) of a parent company and the shares in the parent company are ISA qualifying – see ISA guidance below.
So, in this case, if the issuing company (Credit Agricole CIB) is at least a 75% subsidiary of Credit Agricole, this structured product will be ISA qualifying.
Credit Agricole CIB is a subsidiary of Credit Agricole. and although we would expect this to be a 100% subsidiary of Credit Agricole., we haven’t been able to clarify this (document or company website), so we are not able to provide a definitive response on this. If you feel you have sufficient evidence regarding the subsidiary being at least 75% then obviously you can go ahead and purchase the security within the ISA wrapper as the final decision on the eligibility remains with yourselves as ISA manager