FSA requirements for statements and trade reporting

I have an acquiantance in Monaco who trades through Barclays stockbrokers. This individual is an elderly and unsophisticated investor who also happens to have a fair bit of cash. He does all his share trades through a relationship manager, in person and on the phone.

He apparently placed a limit order to buy £2m worth of a stock at the end of September, which was executed around that time, but his relationship manager is, apparently, a bit dim and forgot to tell him. The execution also did not show up on his statements till yesterday (end of November) so he didnt know anything about the fact that he was now into this stock to the tune of £2m (now much less!) until the statement showed up.

I've had a rummage round on the net and on the FSA site, but I can't find any summary of what a stockbroker's responsibilities under law are for timely reporting of transactions. He must have some recourse, if the facts I've been told are correct?

trades must be reported T+1

trade date plus one day, this is a max.

Broker should send a contract note or some confirmation ... BUT... if he placed the order and it was GTC then i think he's got no comeback, his order was filled as per his instruction.

Could push them for some compensation for bad paper trail but i don't think they'll cancel the trade or anything

Hi - the FSA have a new regime that started in March this year and the final FSA deadline for smaller firms to make sure they have everything in place is 31st Dec 08. I personally think that Barclays should have implemented everything by 31st march as they are a large organisation.

The new rules are called TCF - Treating Customers Fairly and I would suggest that Barclays and the actual individual at the firm, failed on the Principle 7 'A firm must pay due regard to the information needs of its clients, and communicate information to them in a way which is clear, fair and not misleading' which basically means of 'Client Contact Information (sales and after sales process)'.

the main FSA Principle 6 also comes into play as well. 'A firm must pay due regard to the interests of its customers and treat them fairly'. However, firms should also consider their regulatory obligations under the other principles which also contribute to ensuring that customers are treated fairly.'


I would suggest that your friend lodges a complaint and activates the complaints proceedure stating that it is indicative that Barclays have Not Treated him Fairly.
Under the Principle 7, Barclays need to be able to prove and supply
1)copies of all documentation and correspondense
2) notes of all telephone conversations
3)proof of contact after the sales transaction.

I would suggest that they have not treated the client fairly because of the delay in confirming the transaction which therefore has financially had an adverse affect on your friend. Your friend, had he known the transaction had taken place earlier, could state that he would have liquidated his postion at some stage between Sept and November (when he was actually informed), due to the market conditions.


I hope this helps....let me know how you get on. Kind regards, Nicole

i would e-mail or call them FSA and ask.

thanks for the reponses all. I've passed on baker29's very helpful comments, and told him to contact Barclay's complaints dept for starters. If he doesnt get any joy there he can start thinking about FSA/Ombudsman etc.

Arbitrageur said:

I have an acquiantance in Monaco who trades through Barclays stockbrokers. This individual is an elderly and unsophisticated investor who also happens to have a fair bit of cash. He does all his share trades through a relationship manager, in person and on the phone.

He apparently placed a limit order to buy £2m worth of a stock at the end of September, which was executed around that time, but his relationship manager is, apparently, a bit dim and forgot to tell him. The execution also did not show up on his statements till yesterday (end of November) so he didnt know anything about the fact that he was now into this stock to the tune of £2m (now much less!) until the statement showed up.

I've had a rummage round on the net and on the FSA site, but I can't find any summary of what a stockbroker's responsibilities under law are for timely reporting of transactions. He must have some recourse, if the facts I've been told are correct?

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The trade does not have to be reported back. Although TCF (treating Customers Fairly) might apply. With a good client (lot's of money) you would think the broker would 'phone and confirm the trade immediately. (But, hey, Barclays??) The contract note must be sent on the same trading day and must arrive within 24hrs (I think) The statements go out at the end of the month so the client shouldn't rely on those to seee the trades. If the client dos not receive the contract note the following day he/she should 'phone the broker and inform him a.s.a.p. (how else would the broker know the client didn't receive it). If the contract is wrong or diputed the client needs to inform the broker a.s.ap. so that it can be corrected if necessary with the least cost. Furthermore the client can tell/ask the broker that he would like telephone/email confirmation of the trade as soon as possible after it has been done. The trade must be, and is in fact automatically, trade reported to the LSE within msecs. of being done. The time the bargain is received by the broker must be noted and effected in a timely manner (max 10 minutes?).The trade time MUST be recorded and this is shown on the contract note. ALl these details MUST be noted by the broker and therefore can be checked on subsequently. BNote the broker must be your friend, you must have a good relationship with him (includeing 2-way communication). It is not rocket science. I am SURE Barclays will be following all the rules, so I suspect the client hasn't communicated clearly. Limit orders are a bit different and a lot of brokers only take limits up to 1 week and then rnew them with the client. In fact it is probably better to confirm the limit daily, especially with largish trades. Also depends wheether the trade was on SETs or not. Bit more difficult to effect a limit with non-SETS. But all this should be established with the client at the time the order is taken. I am sure BArclays have their own in-house rules about limits.
Looking at other answers, why is customer being treated unfairly? also, as someone commented, contact Barclays compliance and you will get an answer within 24hrs. If not happy contact FSA. This is the best advice you can give to your friend. You don't need to trawl the internet to find the answer and you don't need to get involved.

I am SURE Barclays will be following all the rules

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Are you really?

TWI said:

Are you really?

Click to expand...

Yes, I am. They would be stupid if they weren't. They not only will be following the rules they will have measures in place to actively monitor the procedures.

Do you think they aren't?