T&Cs with free shares

Hello!
I usually just lurk and don’t post but I’ve had someone ask me a question on my Youtube channel and apparently they’ve had no luck getting an answer from T212 customer service.

In the T&Cs it says this:

3.3. You have to log into Your Trading 212 account at least once every three months after you have received/sold the Promotion Share (whichever occurs the latest).

4.3. In the occurrence of an Event of Default you shall be subject to a penalty. The penalty for an Event of Default shall equal the monetary amount of the Promotion Share.

So the question is - does this mean if you received free shares you are forever bound to use T212 otherwise you have to pay them back the free shares? If not, at which point does this stop being enforced?

Thanks in advance!

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Have you got a link to the T&Cs document?

I assume section #4 is on a different topic.

I had a quick look here but couldn’t see those

https://www.trading212.com/en/legal-documentation

Interesting! Perhaps the T&Cs have been updated and they haven’t realised, I remember my friend mentioning this clause to me before but I didn’t really think much of it until it got mentioned yesterday on my comments.

It actually sounds like they don’t want people creating the account for the sole purpose of collecting the free share.

This sounds like a policy back in 2020. It also sounds like it was once not that you’re forever tied to the broker which would be illegal :sweat_smile:

Was trying to find that post myself @phildawson, good spot.

Fair assumption to say its 3 months from the date of issue of the free share, however that isn’t what 3.3 says above. “at least once every three months” is a different animal.

@Tony.V you able to shed any light please?

Greetings :wave: ,

3.3. You have to log into Your Trading 212 account at least once every three months after you have received/sold the Promotion Share (whichever occurs at the latest).

The above :top: stipulates that if you :

  1. Register an account with Trading212.
  2. Receive a free share from the campaign.
  3. Never log back in again

We reserve the right to reclaim the free share and its monetary value, due to inactivity.

Of course, our aim is to have as many active and operational accounts as possible, yet that does not imply that you are “forever bound” to use our services. We cannot and would never limit our clients’ options when it comes to this.

4.3. In the occurrence of an Event of Default, you shall be subject to a penalty. The penalty for an Event of Default shall equal the monetary amount of the Promotion Share.

Understanding this part of the T&C would be facilitated by elaborating on the meaning of “Event of Default”, which is, in general, any action that is considered to breach the Prohibited use requirements, described in the T&C, section “Prohibited use”

As of the paying back part - this post might be useful for reference :v:

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Hey @B.E

Thanks for that, although the wording “at least once every three months” suggests this to be an ongoing thing.

Eg.

  1. Register an account
  2. Receive free share
  3. Continue to trade/invest for 6mths
  4. Go travelling for 6mths, not once checking into your account

Would clause 4.3 still come into play?

Thanks

PS. Not that I’m going travelling anytime soon…!

Hey @Joey_Fantana ,

Clause 4.3 would refer primarily to a breach of the Prohibited use requirements, described in the T&C. If however, you’re asking whether we would still reclaim the share if you do not log in for 6 months after you’ve received it, considering you’ve been an active trader - we would not, since :

  1. If you’re an active trader for 6 months, it is unlikely that all of a sudden, you :
  • Stop keeping track of your portfolio

  • Have not sold the share /withdrawn the funds of the free share by that time- in which case the clause does not come into force.

Regardless, we’re pretty flexible, like you know. So in case of a similar context, we’ll always act in the customer’s best interest.

For the time being (I checked our records), the clause was never applied inaccurately. Our aim is not to provide the share and reclaim it without reason. Instead, we want to segregate the active vs the inactive accounts (created without the purpose of even being used) by even reclaiming the free share value.

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And that sounds as though you take each case on its own merits, @B.E, suggesting it’s actively managed, so that is reassuring.

Cheers! :+1:t2: