More vulnerable consumers with the new market reform

On April 27 a change in the operation of sale of shares, as a result of market reform, to homogenize Europe. Currently the buying of shares listed individually identified and each operation is performed, facing the investor, on the same day the order is crossed, although in reality clearing and settlement in 3 days. As of April 27 this system changes and stop operations reflected individually for sale grouped into blocks of many actions, due to the widespread use of omnibus accounts.

OCU warns that these changes generate uncertainty for small investors, because although this has bought its shares will go a period of three days in a "limbo" where the operation will not be confirmed until the process of delivery of the shares is completed between the broker seller, the Central Counterparty Unit (UCC) that creates the new system and the broker of the buyer. In this period of time, until it terminates the transaction, also economic and political (dividends, attending and voting at Meetings ...) rights still belong to the former owner. It could even be the case that if the seller does not deliver the shares within three days, the operation is not carried out and the buyer must settle for the mere return of the money you paid for the shares that could not buy.

Another important change from the point of view of OCU is that the shares purchased will not be delivered to the consumer but your broker, for what will be necessary to use bus or accounts known as general segregation (OSA) accounts. OCU currently warned that if you already have an account of this, the broker should advise customers that they can choose to work with one of these accounts or an account of individual segregation (OSI). OSI accounts with the broker appears as a starter but together with the client and balances can not be offset against other customers, as it does with the omnibus accounts.

OCU believes that the best way to avoid problems in case of insolvencies by the broker is to use accounts whose segregation is individualized (OSI). However OCU has found that those brokers that offer such accounts do with a completely disproportionate costs, for example 1,000 euros per month as maintenance fee, representing an annual cost of 12,000 euros per year which in practice them out of reach of any small investor.

Finally OCU fears that fee income that the UCC will take to finish an impact on investors.

For more information on this topic https://www.ocu.org/inversiones/reforma-improvisada-s5051364.htm