I’ve just read the new client agreement and I don’t like the sound of share lending. The agreement says I can opt out but how would I do this? Does this affect Invest and ISA accounts or just CFD?

Hi, I wouldn’t worry about share lending. Your shares are guaranteed and you’ll never lose anything. Even in the extremely unlikely event a share isn’t returned after share lending, Trading 212 will take the losses, not you. And I would assume that it’s Invest and ISA as those are physical shares, …

@Tyler Check this out: [image] Securities Lending 📊 Investing We’re considering taking the next step to make our unique zero-commission, zero-fee investing service even more sustainable. A fairly common practice amongst brokers is to lend out the securities of their clie…

@tyler Many other brokers also lend out shares. It is common practice throughout the industry, and in my view nothing to be worried about at all.

I see, I had no idea it was common in the industry. Thanks for the clarification, guys

It’s actually just Invest, as we aren’t allowed to lend out stock held in an ISA, which has made the project surprisingly complicated.

I realised this shortly after posting, surely it messes up the deposit amounts which is a big problem in ISAs

Except you can’t, if you read the changes. Clause 22.7 literally says that if you opt-out of share lending, you will have to terminate the Client Agreement (and effectively have to close your account). The ‘prior consent’ repeatedly mentioned in the document is given by continued use of the platform…

You’re right, looks like you have to accept it. Bit of a shame but there isn’t much reason for the client to be worried. I’m sure the impact of the increased supply of shares available for shorting is not that substantial, those that want to short are not generally limited by supply. It just has t…

You should still get the dividend amounts on shares lent out. 22.5. Shares that are lent out are generally recalled from the Borrower before ex dividend-date in order to capture the dividend. Where the recall does not take place, you will be entitled to a payment from the Borrower equivalent to the…

I don’t think they are as transparent as you think, since if this thread didn’t come out (written by a user) and people didn’t read the terms, they’d just sneak it in an email. At the baseline they’re running a business, and I don’t think it’s a good idea to always think they’re on our side. As far…

How to opt out of share lending?

🤝 Help

David June 19, 2020, 11:49am 3

@Tyler Check this out:

In a nutshell, it won’t affect you in any noticeable way but for us, it’s a huge step in becoming even more sustainable.

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How to opt out of share lending?

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