Not upheld: Service failures generally complaint against Saxo Capital Markets UK Ltd

Decision detail

Summary

Ms P complained that Saxo's decision to cease operations in South Africa caused her financial loss when her CFD positions were liquidated, resulting in a US$12,649 loss. Ms P attempted to transfer her positions to a linked broker and alternative brokers but was unable to do so. The ombudsman found that Saxo acted within its contractual rights to terminate services and that CFD positions, being OTC products, could not be transferred between brokers and had to be liquidated. While the ombudsman acknowledged that Saxo's communication could have been clearer and some conflicting information was provided, it concluded this did not change the outcome as liquidation was the only available option. The complaint was not upheld, and the £500 compensation already offered by Saxo was deemed reasonable for the inconvenience caused.

The Ombudsman's reasoning

The ombudsman found that Saxo acted within its contractual rights to terminate services and close positions. While the termination notice made clear that OTC positions (including CFDs) could not be transferred to the linked broker, it could have been clearer regarding transfers to alternative brokers. However, the ombudsman concluded that regardless of communication clarity, there was no alternative course of action available to Ms P—CFD positions had to be liquidated before any transfer to another broker could occur. The ombudsman acknowledged Ms P's distress and confusion caused by conflicting information but found that the £500 compensation offered was reasonable for the inconvenience suffered.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website