Hello. I have a sell order stuck in awaiting settlement which has just finished it’s 3rd working day with no change. I have emailed your assistance but have had no reply. I know you will tell me ‘unforeseen circumstances could cause these orders to take longer to settle’ but this happens to me every single time I sell! Why does it take so long? To add salt to the wound when I request a withdrawal it usually takes a couple of days to get the money back into my bank account, yet I can instant transfer money to you in seconds. I’m getting really frustrated and I need this money desperately. Surely it doesn’t need to take this long?
I’ve experienced this before, too.
I think its a really big ongoing issue that InvestEngine haven’t yet worked out how to properly resolve.
Makes me wonder what the regulatory compliance position is for platforms like this with such frequency of delays on settlements.
I’m not entirely sure but perhaps banking issues were mentioned here some time ago?
I’m sharing an update I posted in another conversation concerning settlements.
Why are you, as a customer seeing this issue?
- We use registered Market markers on the London Stock Exchange (LSE) to place all our ETF trades; these providers allow us to achieve the best execution for our trades.
- However, due to the generally lower volumes and values for many of InvestEngine’s trades, it’s not always practical for our Market makers to fulfil these orders immediately (or within the expected two days time frame. They often group trades together and manage their book of orders.
- It is important to understand that the prices are locked in once we’ve made the trade; if the price goes up or down, you are locked into the price at the execution time. However, we have seen a delay in the settlement/delivery of shares.
What is InvestEngine doing about it?
- Firstly, engaging with our market makers - to make sure they settle more of our trades on time. As we get bigger, this is becoming less of an issue.
- Secondly, working to eliminate the impact on our customers. We will be changing our trading rules to allow customers to sell those holding impacted (without waiting for settlement). This will eliminate the practical issues customers are experiencing not being able to sell and rebalance.
This solution is actively being worked on as our top priority - we need to ensure we’re still meeting our regulatory obligations with segregated client funds and assets being held in client nominees on CREST, so it’s not as straightforward. But we believe we’ll be able to provide an update in the coming few weeks which we will share with the community first.
We do understand your frustration with unsettled transactions, and we hope to have this sorted very soon,