stockbroker problem!

shellshocknam67

cheerfulcat wrote: »

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

Its not a wind up or a boiler room scam. This is a legit, and have been on the phone with the FSA for a couple of hours today. They want me to hand over the details so they can investigate the stockbroker however they would not be willing to hand over the results to me. There is very little info about exection only dealing in the FSA handbook other than:

execution-only transaction
a transaction executed by a firm upon the specific instructions of a client where the firm does not give advice on investments relating to the merits of the transaction2, 5 .

jonesMUFCforever

Purely my opinion on what I have read here - you won't win.
Execution only means purely that and any chit chat will be merely two people having a chat.( I suggest this is what they will claim and will refer to their terms and conditions of dealing- if you want advice you have to sign up for this service and pay - and even then their disclaimer will get them off the hook!)
You have suggested that a legal action is taking place on a seperate matter - I suggest you find a new broker or do your dealing on-line.

MABLE

I'm afraid you were too greedy. You should have remembered the saying about leaving something for the next man. It is so easy to blame someone else but at the end of the day it was your money and it no doubt suited you to believe what you were being told.

dunstonh

This is a legit, and have been on the phone with the FSA for a couple of hours today. They want me to hand over the details so they can investigate the stockbroker however they would not be willing to hand over the results to me.

This would be a very unusual action for the FSA to take. They do not review complaints at an individual level. It is not part of their remit. That is the role of the complaints proceedure and the FOS. The FSA take an overview position when they audit that firm.

They only would take an interest if they felt a fraudulent or series breach has taken place. A dispute over advice vs execution only would not be expected to be considered serious. Complaints given to the FSA tend to be passed on to the complaints dept of the firm to deal with.

As devils advocate comments, there is not enough info here and bits are being drip fed in your posts make it hard to comment.

From an outsider point of view there are many inconsistencies and unusual activities going on.
1 - they are taking you to court
2 - you are now taking them to court
3 - they havent upheld your claim and nor has the FOS
4 - you say the FOS say you have a very good case so why didnt they uphold it
5 - you say the FSA will investigate your complaint when that isnt the role of the FSA.

Execution only doesnt allow a firm to give advice and then shirk consumer protection by calling it execution only. However, the comments on the position of a share you hold (especially when you look at how you say they are transcripted) appear to be more of a general calming nature. Of course, they are responses where we dont know the questions you were asking.

It is common to get asked about the market conditions after a correction or a crash and generic responses like "these things happen" and "you shouldnt sell now as its long term" etc are not advice. They are clarifications and generalisations to what you already hold.

shellshocknam67

dunstonh wrote: »

This would be a very unusual action for the FSA to take. They do not review complaints at an individual level. It is not part of their remit. That is the role of the complaints proceedure and the FOS. The FSA take an overview position when they audit that firm.

They only would take an interest if they felt a fraudulent or series breach has taken place. A dispute over advice vs execution only would not be expected to be considered serious. Complaints given to the FSA tend to be passed on to the complaints dept of the firm to deal with.

The FSA have been very helpful, the fact the stockbroker and collegues held shares whilst advicing me not to sell was the area they wanted me to pass more information to them. It can be seen in the transcript the dealer was trading the share whilst talking to me.

dunstonh wrote: »

As devils advocate comments, there is not enough info here and bits are being drip fed in your posts make it hard to comment.

From an outsider point of view there are many inconsistencies and unusual activities going on.
1 - they are taking you to court
2 - you are now taking them to court
3 - they havent upheld your claim and nor has the FOS
4 - you say the FOS say you have a very good case so why didnt they uphold it
5 - you say the FSA will investigate your complaint when that isnt the role of the FSA.

Execution only doesnt allow a firm to give advice and then shirk consumer protection by calling it execution only. However, the comments on the position of a share you hold (especially when you look at how you say they are transcripted) appear to be more of a general calming nature. Of course, they are responses where we dont know the questions you were asking.

It is common to get asked about the market conditions after a correction or a crash and generic responses like "these things happen" and "you shouldnt sell now as its long term" etc are not advice. They are clarifications and generalisations to what you already hold.

Just to be a little clearer this does not relate to the recent crash, and I am just trying to find out what is classed as advice. The whole claim and counter claim is a little complex but since I counter claimed the ombudsman is no longer allowed to get involved although they are still helpful when I speak to them. It appears that if I was given advice (which I feel I was, on more than one occasion) then they should put me back in the same financial postition as when they gave the advice. However there is nothing I or the FSA can see that is in handbook that covers 'execution only' advice.

cheerfulcat

shellshocknam67 wrote: »

I am just trying to find out what is classed as advice. The whole claim and counter claim is a little complex but since I counter claimed the ombudsman is no longer allowed to get involved although they are still helpful when I speak to them. It appears that if I was given advice (which I feel I was, on more than one occasion) then they should put me back in the same financial postition as when they gave the advice. However there is nothing I or the FSA can see that is in handbook that covers 'execution only' advice.

A reputable execution-only broker will not give directions of any sort; they simply execute your trade. If you were being told to hold on to the shares in the hope of a recovery in the price, you were being advised ( I am rather surprised at dh's response - there is a massive difference between advisory and execution-only, and I would expect the FSA to at least take an interest ). Bear in mind that even someone paying for an advisory service has no legitimate grounds for complaint just because an investment does not perform as hoped.

How do you know that the person you spoke to owned shares in the same company? What is the name of the company whose shares you were attempting to sell? Did the broker advise you to buy these shares in the first place?

shellshocknam67

cheerfulcat wrote: »

How do you know that the person you spoke to owned shares in the same company? What is the name of the company whose shares you were attempting to sell? Did the broker advise you to buy these shares in the first place?

Stockbroker says he's buying and holding in transcript. A colleague also says similar in another transcript.

They are an AIM listed company.

No, I had never been given recomendations prior to this event as I was 'execution only'

cheerfulcat

shellshocknam67 wrote: »

They are an AIM listed company.

What's the name of this company?

shellshocknam67

cheerfulcat wrote: »

What's the name of this company?

I do not wish to disclose the name of the company for legal reasons, it is however a bona fide PLC listed on AIM.

dunstonh

A reputable execution-only broker will not give directions of any sort; they simply execute your trade. If you were being told to hold on to the shares in the hope of a recovery in the price, you were being advised ( I am rather surprised at dh's response - there is a massive difference between advisory and execution-only, and I would expect the FSA to at least take an interest ).

We don't know the context of the conversation. We know a few snippets but they could be taken in any number of different ways. Some could be a breach of execution only. Some not.

What has the stockbroker got to gain by telling you to keep the shares? Nothing. Unless they have been attempting to ramp up the value of the shares for personal gain. Now that could easily interest the FSA and fits in with the comments made that it was that particular comment that the FSA were focusing on. Not the execution only vs advice side.