Partially upheld: poor customer service, communication failures, complaint handling delays, settlement delays due to third-party custodian complaint against IG

Decision detail

Summary

Mr H, an execution-only client of IG, complained about poor customer service and communication following a Corporate Action affecting Company C shares he held. After selecting to sell his shares by 21 November 2024, Mr H did not receive the sale proceeds within the standard two-working day settlement period and claimed he could not access dividend payments received in December 2024. Mr H also complained about poor complaint handling including delayed responses and unacknowledged emails. The ombudsman found that settlement delays were caused by third-party custodian factors beyond IG's control and that IG had no knowledge of dividend access issues, but upheld the complaint regarding poor communication for which IG had already paid £250 compensation. No further remedy was directed.

The Ombudsman's reasoning

The ombudsman found that while Mr H did not receive settlement within the standard two-working day timeframe, this was due to factors beyond IG's control involving the custodian and the mandatory exchange process for the Corporate Action, which was not completed until 31 December 2024. Regarding dividend access, the ombudsman found no documentary evidence that Mr H attempted to withdraw dividends in December 2024 or that IG was aware of any problem at that time, therefore IG could not be held responsible for an issue it did not know existed. However, the ombudsman upheld the complaint regarding poor communication and complaint handling, finding that IG delayed responses and failed to acknowledge some emails, which the business itself acknowledged and for which it had already paid £250 compensation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website