Response to my complaint to HL4 Jan 2021 11:53
Hi all. I have finally recieved a response from HL with regard to the huge delay in getting out shares transferred
I am writing following your recent complaint in respect of you being unable to dispose of your China New Energy shares owing to the timescales associated with their transfer from the CREST system to the custody of HSBC.
As you are doubtless aware, Hargreaves Lansdown has undertaken to allow clients who hold China New Energy shares to continue to do so following their relisting on the Hong Kong exchange through the third-party custodian, HSBC. This is a necessary arrangement since Hargreaves Lansdown is unable to deal on the Hong Kong markets.
As such, following the transfer of the listing to the Hong Kong markets, the process to transfer any remaining shareholdings of China New Energy to HSBC began. In our communications around the matter, clients were given the choice to either dispose of their shares before the London delisting was finalised, or to enter into the above described custody arrangement with HSBC. We were clear in these communications that the transfer process may be protracted with no specific timescale given, as well as setting out the associated costs and risks inherent in the process.
Whilst I appreciate that the timescale for the completion of the transfer to HSBC is disappointing, I’m afraid I cannot agree that an error has occurred here. The HSBC custody arrangement was arranged and entered into as a matter of convenience for Hargreaves Lansdown clients and was never a compulsory arrangement, nor was it ever set out as a risk free process with a specific timescale.
As part of my investigation, I have made additional enquires on your behalf and I understand that the majority of China New Energy shares have now settled with HSBC as of the end of December 2020. We now await final confirmation that this is the case before releasing the shares for dealing in the manner set out in our initial communications. You should expect further confirmation of this from our Corporate Actions department in the near future.
I am sorry that you had to bring this matter to our attention and I trust that the above has clarified our position. Namely, that Hargreaves Lansdown has acted wholly within its requirements in respect of the transfer of China New Energy shares and will therefore not be considering any redress around the matter.
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