stockbroker problem!

shellshocknam67

Hi all,

New here and not sure where to start thread, so if I can offload my problem here maybe someone can point me in the right direction.

I bought shares in a company and happily watched them go up, I then was thinking of selling them. I advised my stockbroker I was thinking of selling and he spent half and hour on the phone giving me reasons not to sell. His advise was to hold on for a week or two and look again and he had just bought some shares in the company. I took his advise and rang back a few days later and he again told me the share is strong don't worry.

My problem is the shares collapsed big time and I am now out of pocket by many thousands. My account with the stockbroker is 'execution only' and they should not have given me any advice.

Where do I stand legally?

I can't find nothing in the FSA handbook and the Omnisbum says I have a very good case but I need some direction as to where I can find good advice or clarification of my position.

Thanks

Cook_County

I take it that when you say "I can't find nothing" you are incorrectly using the double negative so you do not mean what you typed!

Hve you gone through the formal complaints procedure at the "stockbroker"?

dunstonh

Investment returns are not something you can complain about.

did you get the usual compliance warnings such as:
The price and value of investments and their income fluctuates: you may get back less than the amount you invested.
Remember that how an investment performed in the past is not a guide to how it will perform in the future.

My account with the stockbroker is 'execution only' and they should not have given me any advice.

Was it advice or was generic or factual information or opinion about the state of the markets a few weeks ago?

What proof have you got that you did not receive the correct compliance warnings? What proof have you got that the stockbroker didnt give you a state of the market opinion but gave you full advice?

This is likely to be your word against theirs and they will no doubt have all the documentary evidence to support the fact you were issue the warnings at point of purchase of the shares. They will no doubt say that the phone call was just a state of market conversation and no advice was given. So, what have you got to prove otherwise?

rathernot

shellshocknam67 wrote: »

My account with the stockbroker is 'execution only' and they should not have given me any advice.

If it was an "execution only" account why where you phoning them to discuss the fact you were thinking about selling?

Surely you phone them to say "sell" or you don't do it, because by definition they are unable to advise you?

I would think it comes down to their word against yours - though an interesting point about the person saying they had brought shares in the company, might be useful to mention that as if their employees were lying to you that's wrong IMO (though how you would find that out god only knows).

shellshocknam67

Cook_County wrote: »

Hve you gone through the formal complaints procedure at the "stockbroker"?

Yes, there is more to this than I have disclosed, I went via Omnisbum and recieved reply from stockbroker which I was not happy with, but at the same time they took me to court over another problem, I in turned counter claimed. At this point the Omnisbum has had to let go.

shellshocknam67

dunstonh wrote: »

Investment returns are not something you can complain about.

did you get the usual compliance warnings such as:
The price and value of investments and their income fluctuates: you may get back less than the amount you invested.
Remember that how an investment performed in the past is not a guide to how it will perform in the future.



Was it advice or was generic or factual information or opinion about the state of the markets a few weeks ago?

What proof have you got that you did not receive the correct compliance warnings? What proof have you got that the stockbroker didnt give you a state of the market opinion but gave you full advice?

This is likely to be your word against theirs and they will no doubt have all the documentary evidence to support the fact you were issue the warnings at point of purchase of the shares. They will no doubt say that the phone call was just a state of market conversation and no advice was given. So, what have you got to prove otherwise?

I have transcripts of telephone conversations, some of the comments by stockbroker are:

Edit: Have been advised to remove

Just a few comments from a 30 minute conversation, would any of them be classed as advice?

shellshocknam67

rathernot wrote: »

If it was an "execution only" account why where you phoning them to discuss the fact you were thinking about selling?

Surely you phone them to say "sell" or you don't do it, because by definition they are unable to advise you?

I would think it comes down to their word against yours - though an interesting point about the person saying they had brought shares in the company, might be useful to mention that as if their employees were lying to you that's wrong IMO (though how you would find that out god only knows).

I rang them selling other shares in other companies, I then said I was a seller of the stock in question, I then was given many reasons for not selling without actually giving the order to sell. :mad:

With regard to the point of stockbroker buying shares in the company I have it in the transcript where I accused him if selling his shares and his response was No. I bought some to take up and see. I know friends and collegues of his also had positions in the company.

Jonbvn

So you recorded the conversation and can verify that you are actually talking to your stockbroker? Where did the transcript come from????

shellshocknam67

Jonbvn wrote: »

So you recorded the conversation and can verify that you are actually talking to your stockbroker? Where did the transcript come from????

From the stockbroker via my solicitor.

cheerfulcat

Assuming that this is not a wind-up ( Omnisbum? ), it sounds as though the OP has been the victim of a boiler room scam.

devils_advocate

This seems too complex a problem for you to get any valid advice on the forums. It's also near impossibnle when you ask a question, and then further relevant info comes out in a later post from you. As for the transcript, its impossible to judge on the edited highlights, especially when the editor is one of the interested parties!

For example, you say that the broker said " If you can take them up I would because.........." . How do we or anyone else know that you weren't complaining about a pair of trousers which were too long? (Also, sounds like he's advising on something like a rights issue rather than on simply selling shares). In short, you need to speak to someone who can quiz you on the situation, so that they can advise in the light of the full picture. If you're being sued by the broker, you should speak to your solicitor. Oh, and if you recorded the conversation, didn't tell the other party before you did it, there's no chance you could rely on it in court.