HELP NEEDED - Can't sell investments as broker is changing Custodian

davethebb

I have an issue in which my broker can not sell some of my investments because they are changing their custodian. and they can not tell me when they can!! I have asked them to put it right (e.g. my loss) and they have said it is not of their doing. Why would a change of custodian happen, who would initiate it and if it is not the broker whom can I turn to for compensation?

Thrugelmir

Which of your holdings is impacted? 

davethebb

Thrugelmir, It is all of them. It appears that the broker/investment company is changing custodians for all funds so they use and can only sell when the fund is transferred to the new custodian but they have no idea when the various funds will be transferred. it is very open-ended. Who would change the custodian the broker OR the custodian - who would I complain to?

Notepad_Phil

Who is this broker/investment company that you're talking about?

davethebb

Notepad, I don't think I should say.

wmb194

Complain to the broker as it's with this company that you are the direct customer. Having said this, you should read your account's terms and conditions to see if there is anything in them to cover this sort of situation. It could be that the broker has covered this base somehow.

davethebb

The broker is not being very helpful and is directing me to the custodian because they have hinted the issue was not created by them even though as you correctly say I am their client. Would the custodian ever initiate the change of custodian - I assume it would be down to the broker to change custodian?

wmb194

davethebb said:

The broker is not being very helpful and is directing me to the custodian because they have hinted the issue was not created by them even though as you correctly say I am their client. Would the custodian ever initiate the change of custodian - I assume it would be down to the broker to change custodian?

Who knows, anything is possible, but why would the custodian talk to you? It won't know you as I presume we're talking about investments held via your broker's nominee account.

What do your T&Cs with your broker say about this sort of situation?

Notepad_Phil

davethebb said:

Notepad, I don't think I should say.

You won't be the only client they've got who will likely have have tried to sell without success, so I'm at a loss to understand why you wouldn't name them. It's not as if you've put any derogatory comments down about them; you've just come onto a well known consumer platform and asked a completely reasonable question.

coyrls

It sounds highly unusual to me.

davethebb

I am currently waiting for them to formally respond to my complaint so I don't want to rock the boat at the moment. I am also talking to the ombudsman who has been very helpful and guided me through the complaint with them - I think they are taking a keen interest. They have said that if I am not satisfied with the response then they will immediately investigate but it may take a while??