Not upheld: delayed dividend payments / unfair payment processing complaint against Halifax Share Dealing Limited (HSDL)

Decision detail

Summary

Mr G complained that HSDL unfairly delayed dividend payments from his share dealing account, arguing they should be paid within 3 working days rather than the 10 working days HSDL was taking. HSDL's terms and conditions clearly stated dividends would be paid within 10 working days of receipt, which aligns with CASS 7.13.36R regulatory requirements. The ombudsman found Mr G misinterpreted the terms by conflating withdrawal timeframes with income payment timeframes. Evidence showed dividends were paid within HSDL's disclosed timeframe, and the ombudsman rejected arguments that faster processing by other firms indicated unfair treatment. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that HSDL's 10 working day timeframe for paying dividends is clearly disclosed in its terms and conditions and aligns with CASS 7.13.36R regulatory requirements. Mr G's interpretation that 3 working day withdrawal terms apply to dividend payments was rejected as those terms relate to withdrawal requests, not income receipt. The ombudsman noted that as HSDL holds shares as nominee, it is not unusual for dividend distribution to take time for proper apportionment across the client base. The evidence showed dividends were paid within the disclosed timeframe, and the fact that other firms may process faster does not indicate unfair treatment.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website