You Can't Open A Stocks & Shares ISA If You Don't Have A Job

Psbcuddles

I applied to Trading 212 to open a stocks & shares ISA, but they rejected my application because I don't have a job, I am disabled and recieve a disability benefit!

I informed them that, although I didn't work, I am a house wife and have a small diability benefit.  I told them that my husband did work, he has a managment position in the NHS, and that we are not in debt, have no mortgage and between us are currently saving or investing around £2500 every month towards our retirement.

I am currently waiting for a response from Trading 212.

Has anyone had a stocks & shares ISA application rejected because they don't work?

Ayr_Rage

How were you advised of the reason?

Sounds like there is more to this than not being employed.

Do you have an NI number and are you on the electoral roll at your current address?

I've been retired for 8 years and have not had any issues opening accounts, T212 included.

flaneurs_lobster

As @Ayr_Rage says, don't think just not working would stop an account being opened, could you share the actual wording of the rejection? 

They might well take account of your income, don't think they can take any account of your husband's situation unless it's a joint application.

I haven't been in employment in over 15 years and I've opened dozens of accounts of various sorts with all kinds of providers (including Trading 212), never a peep about not working.

Psbcuddles

Ayr_Rage said:

How were you advised of the reason?

Sounds like there is more to this than not being employed.

Do you have an NI number and are you on the electoral roll at your current address?

I've been retired for 8 years and have not had any issues opening accounts, T212 included.

I applied online at their website, they asked what was my employment status, they didn't have an option for house person / house wife, so I selected unemployed.

They then asked about my income, I have a small disability benefit, so I selected the benefits option.

I gave them my NI number, yes I'm on the electoral roll at my current address.

They sent me an email response:

Thank you for reaching out.
 
We apologize for any inconvenience caused, however, we are required to conduct checks in line with our Consumer Duty responsibilities, which require us to safeguard our clients from circumstances that may elevate the risk of financial harm. Given the financial information you have shared, it appears that you may be at risk of relying on benefits and facing unemployment.
 
You have a cooling-off period till the 29th of April, 2025. If your financial circumstances change during this time, you can proceed with setting up your account.
 
If you have any further questions, please let me know.
 

Psbcuddles

flaneurs_lobster said:

As @Ayr_Rage says, don't think just not working would stop an account being opened, could you share the actual wording of the rejection? 

They might well take account of your income, don't think they can take any account of your husband's situation unless it's a joint application.

I haven't been in employment in over 15 years and I've opened dozens of accounts of various sorts with all kinds of providers (including Trading 212), never a peep about not working.

I've not worked for years, I manage my our money, investments, savings etc...  I regularly move large sums of money around when trying to get the best savings rates, and no one has ever objected to my opening of an account. 

This is the first time it ihas happened.  This is Trading 212's response:

Thank you for reaching out.
 
We apologize for any inconvenience caused, however, we are required to conduct checks in line with our Consumer Duty responsibilities, which require us to safeguard our clients from circumstances that may elevate the risk of financial harm. Given the financial information you have shared, it appears that you may be at risk of relying on benefits and facing unemployment.
 
You have a cooling-off period till the 29th of April, 2025. If your financial circumstances change during this time, you can proceed with setting up your account.
 
If you have any further questions, please let me know.

They seem to be saying I can open an account if my circumstances change.  

Thank you for your reply.

Ayr_Rage

T212 are under no obligation to take you on as a customer.

I guess their logic is that they do not want the risk of any comeback if you invest what they see as your only income, benefits, into higher risk shares and then you complain you lost the lost.

They have worded it differently to my interpretation, but that's the modern "duty of care" world we now live in.

Albermarle

As above they are probably trying to avoid any potential bad publicity. Such as headlines like;

Greedy T212 encouraged disabled person to lose their benefit money trading in risky shares. Shock Horror !

It could also be related to the fact that  T212 have a different business model to more traditional S&S providers and Cash ISA providers.
They seem to provide these services at a loss, with the hope that they can convert clients to more risky and lucrative trading accounts in CFD's etc 

Just open a S&S ISA with someone else.

masonic

Suspect the outcome would have been quite different if you'd put yourself down as retired rather than unemployed.

Psbcuddles

Ayr_Rage said:

T212 are under no obligation to take you on as a customer.

I guess their logic is that they do not want the risk of any comeback if you invest what they see as your only income, benefits, into higher risk shares and then you complain you lost the lost.

They have worded it differently to my interpretation, but that's the modern "duty of care" world we now live in.

I am an ex nurse and I used to work for the DWP, I have seen absolute poverty up close, and it's not a nice thing to see, its devistating to hear how people are suffereing in the UK, the safety net was removed when Universal Credit was introduced, along with Sanctions.

I do understand why Trading 212 are being so protective of my financial security.   However, there are still a lot of men and women in this country who do not work, they don't work because they don't have to, they are financially secure, that includes some people who are disabled. 

Trading 212 should be looking more closely into their customers financial situations before jumping to conclusions.

People on benefits are chosing not to heat their home!  I knew a single parent who's disabled daughters bed broke, this women didn't eat for a month to afford to be able to replace her daughters bed.  I offered to buy her food, but she was too proud to accept my offer.  It is highly unlikely that anyone living in such poverty would even know about the benefits of investing in the stock market, let alone attempt to invest in it!

Psbcuddles

Albermarle said:

As above they are probably trying to avoid any potential bad publicity. Such as headlines like;

Greedy T212 encouraged disabled person to lose their benefit money trading in risky shares. Shock Horror !

It could also be related to the fact that  T212 have a different business model to more traditional S&S providers and Cash ISA providers.
They seem to provide these services at a loss, with the hope that they can convert clients to more risky and lucrative trading accounts in CFD's etc 

Just open a S&S ISA with someone else.

Yes, your right, I had not considered that. 

I'll see if I can open an accout with my current SIPP provider, they are expensive, but I can make cuts elswhere, my husband thinks I'm very mean with money, but that why we managed to pay off our mortgage 10 years early, its the reason why we have money in the bank, and its the reason why I can afford to open and invest in a stocks and shares ISA

Psbcuddles

Thank you to everyone who has responded, your replies are very much appreciated.

I will update you when Trading 212 get back to me with their final decision.