Investment fund withdrawal - am I being unreasonable?
Discussion
Chaps,
Yes, it's an AIBU which is VERY Mumsnet! Get your handbags ready ....
Mrs 2BToo has an account with a large fund. (You will have heard of it). In April she applied to withdraw all the money from the fund. She was eMailed to confirm the withdrawal request would be priced at the next midday valuation of the fund and payment would be in T+4 (i.e the next four working days), as expected.
No payment was made. In June she chased them up. She was told that they had written to us at home to confirm the withdrawal but the letter was returned as she hadn't updated them with our new address from 9 months earlier. They didn't attempt to contact her by eMail or 'phone (neither of which had changed).
She sent them proof of the change of address and they made the payment to us a few days after that. However the payment was the amount that they had told us they would make back in April, although the fund had gone up significantly between April and June.
I've written to them to ask why they hadn't made any attempt to contact her and why the payment was not made with the fund price at point of payment and was sent the following:
In short, is this worth fighting or am I being unreasonable?
Thanks!
Yes, it's an AIBU which is VERY Mumsnet! Get your handbags ready ....
Mrs 2BToo has an account with a large fund. (You will have heard of it). In April she applied to withdraw all the money from the fund. She was eMailed to confirm the withdrawal request would be priced at the next midday valuation of the fund and payment would be in T+4 (i.e the next four working days), as expected.
No payment was made. In June she chased them up. She was told that they had written to us at home to confirm the withdrawal but the letter was returned as she hadn't updated them with our new address from 9 months earlier. They didn't attempt to contact her by eMail or 'phone (neither of which had changed).
She sent them proof of the change of address and they made the payment to us a few days after that. However the payment was the amount that they had told us they would make back in April, although the fund had gone up significantly between April and June.
I've written to them to ask why they hadn't made any attempt to contact her and why the payment was not made with the fund price at point of payment and was sent the following:
eMail said:
Whilst I understand your expectation, I’m afraid that the amount received by your wife for the withdrawal placed earlier this year was in fact correct.
When placing a withdrawal, the value achieved is determined by the valuation point of the trade, 6 April in this instance, and not ultimately when funds are released or received. This is detailed in the Fund’s Prospectus. In addition, this document details when the release of funds may be later than the settlement period of T+4, such as for Anti-Money Laundering purposes which is why we required further proof of address and identity of your wife prior to the release of funds.
Further, it remains the responsibility of the client to ensure that their personal details, particularly address details, are kept up to date on our records.
The increase in fund price between April and June was about 10%, and the amount in question is a few thousand pounds lower as a result. We don't dispute that my wife should have told them of the change of address but we wonder why they didn't try to contact her to verify that the letter hadn't been returned erroneously, particularly as they had two other ways to contact her (eMail and telephone.) Does this qualify as a duty of care? When placing a withdrawal, the value achieved is determined by the valuation point of the trade, 6 April in this instance, and not ultimately when funds are released or received. This is detailed in the Fund’s Prospectus. In addition, this document details when the release of funds may be later than the settlement period of T+4, such as for Anti-Money Laundering purposes which is why we required further proof of address and identity of your wife prior to the release of funds.
Further, it remains the responsibility of the client to ensure that their personal details, particularly address details, are kept up to date on our records.
In short, is this worth fighting or am I being unreasonable?
Thanks!
There are two transactions here. The redemption of the fund and the transfer of the proceeds.
The redemption took place on the correct date and at the appropriate price. There was a delay in transferring the proceeds the reason for which is what you can debate.
You have no right to the increase in the fund price. If there was a claim due to a delay in transferring the proceeds it would be restricted to loss of interest.
I suspect even this would be successfully rejected.
The redemption took place on the correct date and at the appropriate price. There was a delay in transferring the proceeds the reason for which is what you can debate.
You have no right to the increase in the fund price. If there was a claim due to a delay in transferring the proceeds it would be restricted to loss of interest.
I suspect even this would be successfully rejected.
To be fair, if the fund had plummeted between April and June, and they attempted to pay the proceeds based on the June price, would you have considered such reasonable?
The duty of care issue is however a valid point and I think there could be a case to claim a reasonably modest interest rate on the interim
The duty of care issue is however a valid point and I think there could be a case to claim a reasonably modest interest rate on the interim
Edited by Halitosis on Monday 6th December 21:14
KenC said:
There are two transactions here. The redemption of the fund and the transfer of the proceeds.
The redemption took place on the correct date and at the appropriate price. There was a delay in transferring the proceeds the reason for which is what you can debate.
You have no right to the increase in the fund price. If there was a claim due to a delay in transferring the proceeds it would be restricted to loss of interest.
I suspect even this would be successfully rejected.
Nice summary. Thanks. The redemption took place on the correct date and at the appropriate price. There was a delay in transferring the proceeds the reason for which is what you can debate.
You have no right to the increase in the fund price. If there was a claim due to a delay in transferring the proceeds it would be restricted to loss of interest.
I suspect even this would be successfully rejected.
Halitosis said:
To be fair, if the fund had plummeted between April and June, and they attempted to pay the proceeds based on the June price, would you have been accepting of such?
Fair point! Yes, thanks. OK chaps, thanks for this dose of good sense. I'll wind my neck in.
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