Sprott Physical Gold and Silver Trust (ON2R) -CA85208R1010
Based on some of the information we have reviewed previously, we are of the opinion that these trusts are of a closed-ended nature. In this scenario, the ISA rules would only allow the units/shares in the trust to be ISA qualifying if they met the ‘qualifying shares’ criteria. This guidance states that shares have to be issued by a company, which is defined as a body corporate having a share capital. The Sprott Physical Gold & Silver Trusts are trusts that are established under the laws of the Province of Ontario, Canada, and is managed by Sprott Asset Management LP. There is an argument that a trust of this nature, is not a company and any units that it may issue are not ‘shares issued by a company’. On that basis therefore, the units would not be a qualifying investment for ISAs. Whichever ISA qualifying criteria is relevant here i.e., qualifying shares or recognised fund, the fund/units will not be ISA qualifying.