After I converted the notes to stock the brokerage house tells...

After I converted the notes to stock the brokerage house tells FOS ” Mr XYZ elected to redeem and took the market risk associated with this stock”, pretty smooth huh.






Even more bizzarely I was originally offered shares and not notes in the beginning, I have that in writing from the stockbroking firm.
I had never even purchased notes in all my trading history.

After my funds were banked I was told I was getting notes but they would be converted into shares in the short term.
When I ran this case with FOS they basically said it was my fault for relying on representations that the notes would be converted to stock.
Essentially because I didnt ask for my money back all blame was laid upon me.

So market rules such asthis couldnt be used because the brokerage firm purchased notes and not shares and notes arent covered under ASX rules.

3.3.1 Market Participant restrictions
A Market Participant must not:
(b) enter into a Market Transaction for a Client, except in accordance with the instructions of the Client
(c) allocate a Market Transaction to a Client’s account unless the Market Transaction was entered into on the instructions of the Client.
Maximum penalty: $1,000,000


3.1.1 Documents to be given to a client
Before accepting an order from a person to enter into a Market Transaction, a Market Participant must give the person, in addition to all of the documents which the Market Participant is required to give the person in respect of the Market Transaction under the Corporations Act, all of the documents the Market Participant is required to give the person in respect of the Market Transaction under this Part.