The question of the responsibility of banks in the stock market operations of small shareholders arises regularly to the point of being the subject of an examination at the beginning of 2022 by the Financial Markets Authority (AMF) and its mediator, Marielle Cohen-Branche.
The stock market, a question of timing and communication
To do this, the AMF mediator took the example of a couple, whose cancellation of the purchase of around fifty shares of La Française des jeux during its IPO at the end of 2019 had led to a significant financial loss due to the substantial increase in value of the share in the following weeks. Their claim was dismissed the following year by their bank, and they turned to the AMF, which finally agreed with them, the couple having retrospectively been awarded the shares they were initially to acquire, to which were added five shares. additional costs, the equivalent of what should have been due to them if the operation had been carried out in good and due form at the time. In its decision, the AMF explained itself by the need to take into account the impact of the timing of a stock market decision on the damage suffered.
What client protection for stock market transactions?
In this decision by the AMF, which may have the value of case law, the financial authority asserts essential protection for small shareholders and savers in the face of poor execution of a stock market transaction. It implies the banking establishment’s duty of care as soon as the customer completes the formalities required for this type of operation. If it is therefore established that a bank, by its inaction or its delay in applying a decision, has caused damage, it is up to it to restore the situation so that the shareholder finds himself in the position in which he should have been if the banking decision had taken place correctly.
What steps should you take to win your case?
If you believe you have been harmed by your bank during a stock market transaction, whether in the timing of the execution which caused your security to lose value, or because of an error which led to the cancellation of your transaction, you must first send a registered letter with acknowledgment of receipt to your portfolio manager. The person responsible for executing stock market orders must, if able, undertake to regularize the transaction on your behalf. But if in the meantime the value of the security in question has varied enough to cost you a substantial sum, you can request compensation within two months from the AMF mediator. Visit the AMF website to find pre-filled forms or send your letter by registered letter with acknowledgment of receipt to the following address: Mediator, Autorité des marchés financiers (AMF) / 17, place de la Bourse / 75082 Paris Cedex 02.
(By the editorial staff of the hREF agency)