US residents no longer allowed to purchase non-US ETFs?

[eomeakyl]

I just got the following message from Interactive Brokers regarding one of my US trading businesses:

Due to restrictions under U.S. regulations, U.S. residents will be restricted, effective Nov 17, 2020, from opening new positions in certain non-U.S. Exchange-Traded Funds and non-U.S. Exchange-Traded Notes (ETFs & ETNs), including those listed below, currently held in your account
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Please note that this restriction does not impact your ability to transact in non-U.S. stocks or bonds, in general, and while you are not restricted from closing or reducing your current positions, there is no requirement or timeline for doing so. You will, however, be restricted from entering orders that serve to increase your existing position or open a position in a similarly restricted ETF or ETN.
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Does anybody know any more information about these new regulations/restrictions? It seems US persons and US companies will no longer be able to trade some non-US ETFs. I haven't seen anything in the news regarding new laws for trading though. For reference these are Ireland-domiciled ETFs that have been placed into closing only status.

 

[tacokai]

Everyone is afraid of the US government 😀 all began with EMI's banning US citizens now the brokerage firms follow, fantastic. The US has really a tight grip on the balls of it's citizens.

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[eomeakyl]

I finally got a reply back from Interactive Brokers. Apparently it has always been against the law and nothing has changed. They said it's related to non-US ETFs not being registered under the 1933 Act.

The Shares have not been, and will not be, registered under the 1933 Act or the securities laws of any of the states of the United States and the Shares may not be offered or sold directly or indirectly in the United States or to or for the account or benefit of any US Person, except pursuant to an exemption from, or in a transaction not subject to the regulatory requirements of, the 1933 Act and any applicable state securities laws. Any re-offer or resale of any of the Shares in the United States or to US Persons may constitute a violation of US law. The ICAV has not been and will not be registered under the 1940 Act, and investors will not be entitled to the benefit of registration.
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So this has always been the case but most people have simply been ignoring the rules. Looks like IB is no longer ignoring the rule.