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Stanc, QA12, Equinitti's actions are quite appaling when judged against the way other Brokers have settled in similar situations. They (Equinitti) have created a situation which enabled you to buy another stock on the Basis of Funds realised from the Carillion sale. Have you tried phoning? Put them on the spot, the stock was NOT Suspended when you Sold so that excuse is a complet Red Herring. Let the Broker know other PI's who sold during the 12th have had their Trade Settled without problem. In other words DON'T take No for an answer. If necessary ask to speak to a Senior Manager and let him know there are a number of Equinitti Customers who not happy as the Broker is not abiding by Market Rules. You both and anyone else involved will need to take the gloves off with the Broker if a Diplomatic approach fails. Whatever else keep an accurate diary of events.
I, too sold on Friday through Equinity and then bought different shares as I had the funds from my sale from Carillion and now my account showing debit in my account, this is not fair as the sale went through fine on Friday. I rang Equinity and they said because shares were suspended on Monday the settlement date didn't go ahead but my argument is that is not my fault and they should foot the bill as that's is the business they do, where should I go from here? Any helpful advice appreciated.
reading comments on here broker playing hard ball my buy sell into Carillion was though Equiniti part of Lloyds bank still no comment re asking for payment back into my account still not paid. After having my Account refunded 1st time 12th January I used �550.00 to buy shares in am other company my buy went though purchase take out of my refunded carillion money. Inbox message Tuesday 23rd Equiniti asking for payment again as my refund from Carillion had been suspended
CloudyMountain is the Market regulator able to become involved which would save the hassle of Litigation? From posts so far it seems just one Broker is playing "hard-ball". Members would do well to note!!
Asking you the value of your loss is personal so please ignore that question. All you need to know is that costs are live for claims above £10,000 so litigation gets more stressful, expensive and risky. Hopefully though, even if your losses exceed £10,000, you won't need to take it to court
Fleccy - very helpful comment.// Vijaykuve - Re response from Selftrade: "Your contract notes states that the settlement date would be 16 Jan 2018. I am sorry but if you require further assistance please contact an independant financial advisor".//The settlement date is irrelevant in my opinion. What matters is when the contract was entered into (the sale of the shares) and the terms & conditions. If the latter excuse non-payment, I suspect that that may be unlawful i.e. can be challenged. Most people wrongly think that if a term is in the contract, it's automatically binding. May I ask if you have lost more of less than £10,000 (the Small Claims limit)?//Your contract is with your broker. If someone won't settle with them, that's their problem//
"5040 Where a register has been closed following liquidation of the issuer, a buying member firm shall pay against delivery of the transfer and certificate, or certified transfer, provided that it is accompanied by an authorisation from the registered holder to the liquidator that the liquidator pay to the buyer or its customer or counterparty any return of capital." Guidance to Rule: By agreement between the buyer and seller, in place of the documentation set out in rule 5040, the seller may pass a �letter of undertaking� to the buyer promising to pass on any distribution by the liquidator. (Amended N02/12 � effective 1 February 2012) 5041 A seller who is unable to deliver the documentation under rule 5040 may not require payment until completion of the winding-up, at which time any distribution by the liquidator shall be delivered to the buyer. (Amended N02/12 � effective 1 February 2012) 5042 Where settlement of a central counterparty contract cannot take place because of a court, administrative, or regulatory order, or because of an insolvency event affecting the issuer of such securities, such central counterparty contracts
Nice username,could have done with that one last week!. I feel the Qatar debt,if there ever was one, will turn out to be another scam,by blaming the Qataris it took the heat of the Carillion BOD's. Incidently i am with Interactive investors and did sell on the 12th jan and had no problems apart from i should have clearly sold more,Ha.
Obligation to settle [5000] A member firm shall ensure that every on Exchange trade effected by it is duly settled. Guidance to Rule: A member firm is responsible for ensuring the delivery of securities on the agreed settlement due date for all its on Exchange business, whether the member firm sold as agent or principal. Settlement can be gross or net. In the absence of agreement to the contrary, gross settlement should be assumed. This rule is included to ensure the orderly functioning of the Exchange's markets and because the Exchange has an obligation under its recognition by the FCA to have in place arrangements for the performance of all transactions conducted using the Exchange's facilities. Member firms are obliged to ensure the settlement of trades entered into under their name. This obligation exists even if the reason for non-settlement is because of a customer or counterparty failing to settle and / or when the member firm is acting as agent. (Amended N05/13 � effective 16 April 2013)
I hold funds in a best invest SIPP. I sold in friday before the liquidation and the funds are still in my account. Hope that helps someone?
fairdealer20, hopefully the truth will come out asap, the Qatar foundation isn't exactly short of cash !!!!!! money should go to pensions...
Vijaykuve-Your statement is not clear to me.Trade placed(and presumably paid for)on Friday 12th.Carillion shares suspended on Monday 15th.Settlement date 16th.January.You say that the market would not settle the trade so the funds cannot be paid.If this is the case,will the client get his money back,and if so,when?
The Pension Fund is higher ranked than Shareholders, so they will get funds, if found, before Shareholders.
maybe the money that comes from that pays for the pensions rather the shareholders. Its the right thing to do
Are shareholder going to pay for the pensions?
Tessellate, members should read the Stock Exchange Rules which Fleccy kindly posted yesterday. The Rules were updated earlier this month and whatever T&C Brokers have in place they must settle within 20 days of the Trade.
isitsaturdayyet, there has an ongoing dispute with Qatar, they owe carillion and in turn they have claimed Carillion have breached the Contract terms. Maybe the truth will come out if the Reciever gets stuck in!!
Check your specific terms and conditions. It may well be that your contract states that you take risk of them not being able to settle, but equally they could be trying it on!
Hi , I'm new to all of this , complete novice . bought a few shares last year , carillion being one . only myself to blame for that one , had plenty of time to get out , didn't , thankfully not to big an amount . My only question is did carillion default on their work for the Qatar government regarding all the work for the 2022 world cup ??? it seems the qataris owed carillion well over 200 million , how did they get away with that ?? and why didn't the british government step in , if carillion weren't at fault there ?? cheers
Response from Self Trade ****************************** GoodMorning Thank you for your message We work on a three trading days settlement for trades placed through our service. As you placed the trade on Friday 12th the trade was due to settle on Tuesday 16th, As Carillion shares were suspended on 15th January the market would not let us settle the trade so the funds cannot be paid, Your contract notes states that the settlement date would be 16 Jan 2018. I am sorry but if you require further assistance please contact an independant financial advisor.
"In practical terms, however, the transaction is all but officially done at the time of trade execution as soon as the trade is executed, both the buyer and the seller are legally obligated to fulfill the terms of the sale. The buyer is obligated to provide sufficient funds to cover the purchase price, and the seller is legally obligated to provide the purchased number of shares." https://www.investopedia.com/ask/answers/042715/when-share-purchase-marked-settled-brokerage.asp
Vijay......suggest you check the T&C agreement, take screen shots of the Sale which should state Settlement time etc. It seems like others, you have not received the consideration into your account? Your transaction is not with the Buyer but with the facilitator ( Broker) and is erroneous to be told the Buyer has not payed. This is NOT your problem, but do read the Terms and Conditions. There was a very useful copy of the Market's regulations posted yesterday, read it will help.
@justthoughtidsay, I used self trade for the trade. Still no response to my complaint. I hardly sell shares, this is just the second time I have done it, so I cannot figure out where the issue is. They claim they did not receive any cash from settlement. Is it possible ? Surely the buyer would have had his cash taken, so where is the cash stuck ?
Someone asked for the trading experiences of others affected by this mess : I sold my CLLN holding on Friday, 12 Jan, around 1230hrs (at a painful loss) through Hargreaves Lansdown. My SIPP account was credited immediately, as expected, and there has been no further communication on the matter.
Which Equiniti platform were you using was it selftrade or a different platform?