Not upheld: corporate action mishandling and alleged misleading information on trading platform complaint against Saxo Capital Markets UK Ltd

Decision detail

Summary

Mr A complained that Saxo mishandled a corporate action relating to his Carasent ASA shareholdings during a cross-border merger, claiming Saxo selected an unfavorable default option, displayed misleading pricing information on its platform, and refused to accept the non-tradable securities back after he transferred them to another broker. Mr A missed both the 24 November 2024 deadline to elect for tradable shares and the 31 March 2025 deadline for fee-free conversion, resulting in a £145 conversion fee. The ombudsman found that the default option was set by the issuer, not Saxo, and that Saxo clearly communicated all relevant information and deadlines. The price display was static at NOK 21, not fluctuating as claimed, and Saxo's refusal to accept the non-tradable securities was a reasonable commercial decision. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman concluded that the default option was determined by the issuer, not Saxo, and Saxo had no power to alter the terms. The corporate action information, including key deadlines and the consequences of inaction, was clearly communicated to Mr A via the platform and remained accessible throughout. The price display was static at NOK 21, not fluctuating as Mr A claimed, and even if it had fluctuated, this would not override a formal corporate action notification. Mr A had clear opportunities to elect for tradable shares or convert within the fee-free period but failed to act. The information provided was not misleading, and Saxo's refusal to accept the non-tradable securities back was a reasonable commercial decision applied consistently with its policy.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website