Not upheld: unclear communication regarding share sale opportunity complaint against Chip Financial Limited

Decision detail

Summary

Mr R, a shareholder in Chip Financial since 2020, missed the registration deadline for a secondary share sale process in September 2025 and complained that the company had not communicated the opportunity clearly enough. He argued the email subject line 'Register to join our 2025 funding round' was confusing and did not adequately highlight the share sale opportunity. Chip Financial maintained that it had provided clear information about the sale process. The ombudsman found that while the subject line could have been more explicit, the email body contained a dedicated section clearly explaining the sale opportunity and directing shareholders to detailed FAQ documentation. The ombudsman also found that even if communication was unclear, no compensable loss could be demonstrated because the documentation repeatedly stated that share sales were not guaranteed and depended on buyer demand. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that while the email subject line could have been more explicit about the share sale opportunity, the body of the email contained a clearly headed section explaining the sale process. The supporting FAQ documentation provided detailed information about how to participate. Email delivery records confirmed the information was made available to Mr R. Critically, even if communication was unclear, no compensable loss was demonstrated because the documentation repeatedly stated that share sales were not guaranteed and depended on buyer demand, making any claim of specific financial loss speculative.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website