TD Direct Investing: Want to close account but they won't transfer out shares

[H. Jones]

Someone I know urgently wants to close his account with TD Direct Investing. The company recently bought Natwest Sharebrokers with whom he bought/sold his shares with.

TD Direct Investing have locked him out of his sharedealing account. I understand he has written a signed letter to TD Direct Investing asking them to release all his shares to a relative, because he himself no longer holds any bank accounts and has no de facto country of residence.

However, TD Direct Investing have refused to transfer all his shares to his relative's account, saying that they can only transfer the shares to an account in his name. He doesn't have any such accounts.

Can you please advise how he can get his shares out of TD Direct Investing's clutches? There is no court order against my friend.

Please help him as his situation is very dire.

Thank you.

H. Jones

[mro...@btopenworld.com]

On Wednesday, June 24, 2015 at 2:57:49 AM UTC+1, H. Jones wrote:
> Someone I know urgently wants to close his account with TD Direct Investing. The company recently bought Natwest Sharebrokers with whom he bought/sold his shares with.
>

> TD Direct Investing have locked him out of his share dealing account. I understand he has written a signed letter to TD Direct Investing asking them to release all his shares to a relative, because he himself no longer holds any bank accounts and has no de facto country of residence.

>
> However, TD Direct Investing have refused to transfer all his shares to his relative's account, saying that they can only transfer the shares to an account in his name. He doesn't have any such accounts.
>
> Can you please advise how he can get his shares out of TD Direct Investing's clutches? There is no court order against my friend.
>
> Please help him as his situation is very dire.
>

He is clearly in the hands of execution only brokers. Such people, quite common in the share broking business will only buy, sell and hold shares on behalf of clients. The client never actually owns the shares they buy.

To open such an account the client must provide the brokers with bank account details what they call an execution account. The will take money to settle orders by direct debit from this account. The will pay receipts from share sales etc. into this account via BACS The only access that the client has to his money is though this account.

The provider will not transfer money into any other account save the nominated execution account. He runs a strictly no frills service. It's the kind of service most banks operate. No share certificates, no company reports or dividend cheques, no right to attend company AGMs but it does cut down the expense of holding small parcels of shares.

My advice to your friend is to open a suitable bank account and then to notify his provider that from then on he wishes this to be used as his execution account.

[|||new...@nezumi.demon.co.uk]

On 24/06/2015 02:57, H. Jones wrote:> Someone I know urgently wants to close his account with TD Direct Investing. The company recently bought Natwest Sharebrokers

> with whom he bought/sold his shares with.
>
> TD Direct Investing have locked him out of his sharedealing account. I understand he has written a signed letter
> to TD Direct Investing asking them to release all his shares to a relative, because he himself no longer holds any
> bank accounts and has no de facto country of residence.
>
> However, TD Direct Investing have refused to transfer all his shares to his relative's account,
> saying that they can only transfer the shares to an account in his name. He doesn't have any such accounts.

That is rather careless. He must have had such a linked bank account to open the execution only share investment account originally.

>
> Can you please advise how he can get his shares out of TD Direct Investing's clutches?
> There is no court order against my friend.
>

Open a bank account in his own name that is acceptable to the broker.

> Please help him as his situation is very dire.
>
> Thank you.
>
> H. Jones

I doubt if the bank/broker has any leeway on this to avoid liability for fraud and money laundering. Why can the guy not open a new bank account?

--
Regards,
Martin Brown

[Nick]

I doubt they can refuse on the basis of money laundering? Do you have a
reference.

I know they can refuse new business due to money laundering concerns or
report suspicious behaviour but I don't see that the money laundering
regulations give them the right to keep their customers money.

Opening a bank account is a very onerous requirement particularly if the
customer is not resident.

[Don Phillipson]

> On 24/06/2015 10:24, |||newspam|||@nezumi.demon.co.uk wrote:

>> Open a bank account in his own name that is acceptable to the broker.

>> . . . I doubt if the bank/broker has any leeway on this to avoid

>> liability for fraud and money laundering. Why can the guy not open a new
>> bank account?

"Nick" <Nick...@yahoo.co.uk> wrote in message
news:mme17l$uv3$1...@dont-email.me...

> I doubt they can refuse on the basis of money laundering? Do you have a
> reference.

No, it is probably simpler than that. Institutions holding accounts are
responsible for knowing who the account-holders are. Requiring that
a cash transfer be made only to another account (e.g. not by issuing
a cashier's cheque) also transfers from the sending account to the
receiving account all responsibility for the bona-fides of both the
funds and the payee.
--
Don Phillipson
Carlsbad Springs
(Ottawa, Canada)

[|||new...@nezumi.demon.co.uk]

On 24/06/2015 11:37, Nick wrote:
> On 24/06/2015 10:24, |||newspam|||@nezumi.demon.co.uk wrote:

>>> Can you please advise how he can get his shares out of TD Direct
>>> Investing's clutches?
>>> There is no court order against my friend.
>>>
>> Open a bank account in his own name that is acceptable to the broker.
>>
>>> Please help him as his situation is very dire.
>>>
>>> Thank you.
>>>
>>> H. Jones
>>
>> I doubt if the bank/broker has any leeway on this to avoid liability
>> for fraud and money laundering. Why can the guy not open a new bank
>> account?
>
> I doubt they can refuse on the basis of money laundering? Do you have a
> reference.

They might be persuaded to transfer the shares to the original owner or in *his* name to another brokerage but certainly not to a "relative".

> I know they can refuse new business due to money laundering concerns or
> report suspicious behaviour but I don't see that the money laundering
> regulations give them the right to keep their customers money.

ISTR under those circumstances or where the rightful owner no longer satisfies UK residency requirements they may choose to pay him by crossed cheque but if he doesn't have a bank account then he is still no better off.
(at least that is what Halifax T&Cs imply)

>
> Opening a bank account is a very onerous requirement particularly if the
> customer is not resident.

But he must have already closed one that was originally nominated or had all his banking facilities suddenly withdrawn to get into this bind.

--
Regards,
Martin Brown

[Nick]

There is a similar thread in uk.legal.moderated with more information.
"TD Direct Investing: Want to close account but they won't release shares"

The posts by Chris R are of particular interest.

[|||new...@nezumi.demon.co.uk]

I think the one by David Martell is probably the most telling...

You would hope that "H. Jones" might be bright enough to at least obtain a sacrificial email account hjones101@ or post anonymously.

He certainly has a tremendous talent for arousing suspicion.

Regards,
Martin Brown

[mro...@btopenworld.com]

On Thursday, June 25, 2015 at 12:34:28 PM UTC+1, Nick wrote:

This is probably because the shares are held in a nominee account and so bought in the name of "TD Direct Investing". To transfer them to an individual name and address would require transfer involving re-registration. This would involve the broker in extra expense which he would not be prepared to incur. Some firms will provide this service but only upon payment of an additional fee. It's usually cheaper to sell the shares and use the proceeds to re-buy them in the normal way.

Alternatively it may be that the company has executed an order and for some reason have not been paid.