Ombudsman decision on rights issue late

Tryingtosave1000

Hi,

I had gone to ombudsman for a rights issue being delivered late by TD Direct.

The complaint and decision can be found here:-

http://www.ombudsman-decisions.org.uk/viewPDF.aspx?FileID=65670

Complaint:-

complaint
Mr B complains that TD Direct Investing (Europe) Limited (“TDI”) failed to update his share
dealing account with nil paid rights he was entitled to in a timely manner. To settle his
complaint Mr B is looking to TDI to acknowledge they were slow in updating his account,
grant him a number of free trades and to change its “attitude”.
background
The issue entitled Mr B to a number of nil paid rights on an ex-entitlement date of 22 April 2014.
However his share dealing account was not updated with these rights until 24 April 2014.
Mr B phoned TDI on 22 April 2014 about the nil paid rights and was informed that they had not yet
been allocated to his account. On 23 April 2014 Mr B phoned TDI again and was told that the nil paid
rights would hopefully be allocated to his account later that day but would definitely be allocated by
24 April 2014.
This complaint was considered by one of our adjudicators who concluded that it should not
be upheld. In summary he said that there was no contractual obligation on the part of TDI to
credit client accounts with nil paid rights on the day of their receipt. He then went on to
explain why in his view the time taken by TDI to allocate the nil paid rights to Mr B’s account
was not, in all the circumstances, unreasonable.
Mr B did not agree with the adjudicator’s view so the matter has been passed to me for
review and decision.
my findings
I have considered all the available evidence and arguments to decide what is fair and
reasonable in the circumstances of this complaint.
I note that Mr B says he was allocated his nil paid rights on an account held with another
broker on 22 April 2014. I can therefore appreciate why Mr B feels that TDI should have
been able to do the same. However, the amount of time it takes to update an account will
vary from broker to broker and, amongst other things, will depend on precisely when the nil
paid rights are received by that broker and how many accounts require updating.
I have seen nothing in Mr B’s account terms and conditions that TDI undertook to allocate nil
paid rights on the day of their receipt. But that does not mean that TDI can unreasonably
delay such an allocation. But in this particular case, and having considered both parties’
submissions very carefully, I am not persuaded that TDI unreasonably delayed updating
Mr B’s account.
But in any event although Mr B says TDI’s actions “limited his options” I have seen nothing
that would lead me to conclude that TDI’s actions caused Mr B to suffer an actual financial
loss.
Therefore I see no reason to award Mr B what he is seeking.
Ref: DRN7526181
2
my final decision
For the reasons given, my decision is that I do not uphold this complaint.
Peter Cook
ombudsman

Tryingtosave1000

My question is that is there anything further that can be done or should I consider this decision final.

vuvuzela

Tryingtosave1000 wrote: »

My question is that is there anything further that can be done or should I consider this decision final.

What exactly are you looking for in this case ? What financial loss can you quantify ?

Tryingtosave1000

I have lapsed right issue. On 24th April, the price of the Nil Paid right was 2p which became only 0.7p on 26th april. I did not want to sell on a reduced price and now have all rights issue as lapsed as the company did not give any lump sum. So in total, I stand diluted with no money received on the rights issue.

Tryingtosave1000

So in total a loss of £15,000 as if the rights issue were in the account on 24th April, i could have sold my rights for £15000

bris

Far to complicated for this forum, you need expert specialist advice.


However the ombudsman will know what he is talking about so it could get very expensive taking it to court.

wealdroam

Tryingtosave1000 wrote: »

So in total a loss of £15,000 as if the rights issue were in the account on 24th April, i could have sold my rights for £15000

OK, if you are absolutely convinced that that you have suffered that loss, then take TDI to court.

Unfortunately, courts only deal with actual losses. I fear that you stating what you could've made is not the same thing.

I note also that the ombudsman cannot see you have suffered an actual loss:

Tryingtosave1000 wrote: »

...although Mr B says TDI’s actions “limited his options” I have seen nothing that would lead me to conclude that TDI’s actions caused Mr B to suffer an actual financial loss.

That may not help in any court case.

Tryingtosave1000

Thanks Bris.

Thanks Wealdroam, my frustration with ombudsman is that they kept referring to terms and conditions as if they had made up their mind.

Their suggestion was that even though the price had fallen on 26th April, my not selling shows that I was not perhaps interested. Another thing they mentioned was that I had rung up TD a couple of times later and was told that the stocks will be delivered later and I did not raise a dispute. This is quite ridiculous as what I infer is I should have constantly shouted at the customer service agent whenever I called.

I guess I should give up this case as taking to small court will cost be another £400 and may not lead me anywhere or for once I should take them.

If the decision is against me, will i have to pay anything further?

Tryingtosave1000

Bris, who should I go for expert specialist advice? I don't want to go to a solicitor who will charge me £80 per hour or more and drain me down.

Tryingtosave1000

Phewww, guess no one else has any advice. But thanks, I did felt a little better that someone responded to my queries in a more concerned manner.

lincroft1710

If you need expert financial advice, you will need a financial expert. If you need expert legal advice, you will need a legal expert. Neither will be cheap.

So either accept the ombudsman's decision or pay someone for their advice in whether pursuing the matter further is worthwhile.