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Old 20.02.2021, 01:39
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Help : Missed Rights Issue

Hi All,

Hope you are doing well. Can you please guide me on the below situation ?

- I have a custody account with one of the major banks in CH
- Back in 2018 - one of the companies in my portfolio did a rights issue.
- I wrote to the bank to advice me on how to handle that. Nothing came back.
- The rights issue had expired in due course of time.
- I have been fighting with the bank for more than a year now.
---> My demand - since they did not advice me accordingly in time - they have to organise the additional units of stocks for me
---> Bank's argument - even if I did not get any response - I should have called them and so they cannot help.

1. Is there any possibility to get the additional stocks resulting from the rights issue after > 2 years of the expiry of the rights issue ?
2. Can this be considered a " violation of consumer rights" as they did not timely advice me? As a result can the legal system force the bank to compensate me for their mistake ?

Thanks a lot for your support.

Stay healthy and take care
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Old 20.02.2021, 03:08
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Re: Help : Missed Rights Issue

That would be a no. And you are not the first one. Read the terns and conditions of your account and youíll find:

- You have to acknowledge and accept all kinds of risks involved in stock investing

- Unless you have a specific contact with the bank to provide you with stock investing advice, itís not their responsibility to do so.

- The responsibility is placed on you to keep informed of corporate actions and to inform the bank if you wish to do anything other than the default action, which is always to sell rights...

Customers have the potential to loose significant amounts of money in this area, so banks try to make sure they canít be held responsible.
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Old 20.02.2021, 14:50
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Re: Help : Missed Rights Issue

Another no too sorry, and this time from a practical perspective because investors could demand ex post the right to buy extra shares if the price had worked out to their advantage.

You'd really have to prove the bank did not act on your orders, eg you instructed them to take up your rights, to sell the nil-paids etc and that you only later discovered they did not execute for you.

But as you have a custody account they'd be unwilling to advise you on whether to subscribe etc, this might be why they didn't reply, their duty was to inform / alert you.
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Old 20.02.2021, 19:44
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Re: Help : Missed Rights Issue

Three years on, I think it's time to move past this. The cut-off dates and terms & conditions must have been publicly available at the time, so if you'd written to the bank and not received a reply, you should have followed it up before the deadline was reached. Annoying for you if you genuinely thought they'd acted on your instructions and not told you, but that may have been naive. Put it down to experience and move on.
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