RE: Colleagues26 Oct 2018 09:23
Hi Max....item 2....After some lengthy discussions yesterday and emails, I am pretty certain IG are not lending out my shares for others to short. I am not sure about holders that have spread bets with them, but I have always owned all of mine and they have been paid for. The extract below is from their compliance team. It seems front room staff needs more training and have been misinforming some clients. IG also state they don't lend out client's owned shares apparently??!!?? Maybe it should be up to other holders to find out how their broker operates.
To confirm, your assets are categorically not used for short selling. IG do not rehypothecate client assets, including your stock, without prior permission. The same applies to the nominee with which your stock is held and traded with, as this is still held as client assets in accordance with the relevant protections this entails. Your shares are held in a segregated client accounts under nominee arrangements with approved custodians. This means that they’re easily identifiable as client assets and, as with cash, IG and its creditors don’t have any charge, liens, or rights of set-off or retention over them. Your shares may be pooled with other clients’ shares, but never with shares owned by IG.
In order for IG’s custodian broker to have the right to use your stock, permission from IG would be required. This is never given.
Your item number 3...From what I understand, I don't believe Neill is turning his back on the issue, but whatever outcome happens, with our majority holding of a simply superb company in Spain, this is no longer an issue or worry.
All the best