The dividend received by you must be £10 or more for this to be reinvested. The dividend must also be sufficient to buy at least one share in the company for the reinvestment to take place. We will only reinvest in whole numbers of shares which means that you may be left with small amounts of cash. This will not be carried forward to the next reinvestment.
Our custody charges are deducted quarterly from the cash in your account. If your account has insufficient cash we will deduct the charge taking your account overdrawn. This may mean that future dividends will not be reinvested as the overdrawn position will be cleared before any reinvestment takes place.
If we receive an instruction to transfer your account, all dividend reinvestment elections will be cancelled so that no additional shares are purchased during the transfer process. Cash received for dividends during this period would remain as cash in your account, until transferred.