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What are Publicly Traded Partnerships (US PTP)?
A publicly traded partnership (PTP) is a business organization owned by two or more co-owners whose shares are regularly traded on an established securities market. It is a type of limited partnership managed by two or more partners (including individuals, corporations, or other partnerships) and is funded by limited partners who provide capital but have no management role in the partnership.
Are there charges for Publicly Traded Partnerships (US PTP)?
The US Internal Revenue Service has issued a new provision under Section 1446(f) of the Internal Revenue Code that primarily impacts non-US persons who invest in US Publicly Traded Partnerships (“PTP”) Securities.
With effect from 1 January 2023, non-US persons may incur a 10% withholding tax on any gain realised from any disposition of interests in US PTP securities (as compared to 0% currently).
How does this impact me?
In view of this update, Syfe Trade will cease buy orders and transfer-in requests on US PTP securities with effect from 19 December 2022. From the same date, only sell orders will be accepted.
If you currently hold US PTP securities and wish to sell them, you should place your sell orders by 28 December 2022 to ensure sufficient time for the execution of the trade(s) before 1 January 2023. We will continue to support the liquidation of US PTP security positions beyond 31 December 2022.
Clients who hold US PTP securities after 31 December 2022 may be impacted by the additional withholding tax set out above. Please take note and review your portfolio accordingly to minimise the possible impact from holding these securities.
For more information, please refer to the US IRS website on the US PTP withholding tax here, and the list of US PTP securities here. Kindly note that the US PTP securities list is non-exhaustive and may change at any time.
You will be able to transfer shares from another brokerage to Syfe via Automated Customer Account Transfer Service (ACATS). Please note that transferring shares from Syfe to another brokerage is not supported at the moment.
What is the ACATS process like?
The brokerage that you intend to transfer your securities to (Syfe in this case) is the “receiving firm”. The brokerage where your securities are currently held is the “delivering firm”.
The process always starts with the receiving firm. To transfer securities to Syfe, kindly fill up the “Securities Account Transfer Request” form here and mail it with the relevant documents to firstname.lastname@example.org. Our Syfe Support Team will be in touch for any clarifications.
What securities can I transfer with ACATS?
You can transfer cash and publicly traded stocks or ETFs on the US stock market.
However, please note that transfer of fractional holdings is not supported, only whole shares can be transferred.
If you own fractional holdings you may either:
- Liquidate the fractional holdings into cash with your existing broker before a full transfer of whole shares and cash can be processed, or
- Opt for a partial transfer of whole shares only.
If you are unsure, you may check with our Syfe Support Team via email at email@example.com before initiating an ACATS transfer request.
How long will it take to transfer my securities?
Once the delivering firm verifies the information sent over by the receiving firm, the ACATS process begins and you can expect your securities in your Syfe account within 10 to 14 business days. It may take longer if the application is rejected for various reasons, such as if form is filled incorrectly.
Can I transfer only some of my securities?
Yes. Just fill in Section 4 of the “Securities Account Transfer Request” form.
Are there any fees to use ACATS?
There are no fees to transfer your securities into your Syfe account but your existing brokerage may charge you a transfer fee. Kindly check with your existing brokerage directly on the fees they charge.
How do I start?View more
You may download the Securities Account Transfer Request form here. Please send the completed form and the most recent account statement of your existing brokerage to firstname.lastname@example.org. We will update you once the transfer has completed successfully.
Fractional trading allows you to own a fraction of a share, so you get to invest in your favourite company - regardless of its share price. You decide how much you want to invest, and even if the amount doesn’t buy a whole number of shares, you can still buy fractional amounts. In short, you can maximise all your available funds to invest in the shares you want.View more