Not upheld: corporate action execution and share rights sale delays complaint against Hargreaves Lansdown Asset Management Limited

Decision detail

Summary

Mr P complained to HL about delays in selling his share rights in Company O and the failure to sell all share rights during a corporate action in September 2025, claiming a financial loss of approximately £5,700. HL did not uphold the complaint, explaining that the delays were due to CREST facility unavailability until 25 September and the limited timeframe to find counterparties willing to purchase the rights. The ombudsman found that HL acted fairly and reasonably given the circumstances, including the constrained timeframe and HL's terms and conditions which explicitly state that sales of share rights are not guaranteed. The ombudsman concluded that the failure to sell all rights at the best price was due to matters beyond HL's control and that HL did all it reasonably could, therefore not upholding the complaint.

The Ombudsman's reasoning

The ombudsman found that HL acted fairly and reasonably given the circumstances. The key constraints were: (1) CREST facility was not available until 25 September, leaving only a limited window until the 30 September deadline; (2) HL's usual counterparty declined participation due to time constraints; (3) HL successfully found an alternative counterparty but could only source buyers for a portion of the rights; (4) HL's terms and conditions explicitly state that sales of share rights are not guaranteed. The ombudsman concluded that the failure to sell all rights at the best price was due to matters beyond HL's control, and HL did all it reasonably could under the circumstances. As an execution-only provider, HL was not expected to enter into multiple commercial relationships or pursue compensation from other parties.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website