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Highlights:
- AJ Bell Restricts Online Trading: Trades for Aquis-listed ‘Access’ segment stocks are now limited to phone-only orders.
- Backlash from Companies: Aquis-listed firms criticize the move, citing concerns over its impact on small-cap growth.
- AJ Bell’s Justification: The broker defends its decision as a customer protection measure, emphasizing its duty of care.
AJ Bell PLC (LSE:AJB) faced criticism after abruptly restricting online trading for smaller companies listed on the Aquis Exchange’s ‘Access’ segment, pushing trades to a phone-only option. The decision means customers now need to call the broker to place orders for shares listed on this segment, creating frustration among companies and shareholders alike.
According to an AJ Bell spokesperson, the decision aims to protect customers from the risks associated with trading in these less liquid, volatile stocks. This step sparked a backlash, particularly from executives of Aquis-listed companies, who argued that the move hampers efforts to support and grow small-cap firms in the UK.
The uproar was initially triggered by Melissa Sturgess, CEO of Ananda Developments Plc, a pharmaceutical company listed on Aquis’ ‘Apex’ segment. Sturgess took to LinkedIn to express her dissatisfaction, calling the restriction a “disgrace” and noting that the broker made the change without consulting company heads or investors. She argued that such actions undermine support for small companies trying to gain traction in the UK market.
The Apex segment, which features higher quality, more liquid firms, was also briefly impacted, though AJ Bell reinstated online trading for these stocks later in the day. The controversy, however, continued as many in the small-cap community viewed the move as a heavy-handed approach.
In response, AJ Bell reiterated its position, stating that the decision was made to ensure customers are fully aware of the risks involved in trading illiquid securities. The broker emphasized that while it understands the frustrations of the affected companies, its primary duty is to its customers, not the businesses whose shares are traded on its platform.
Aquis Exchange itself also voiced concerns and stated on LinkedIn that it has been in talks with AJ Bell to resolve the issue. Despite these discussions, AJ Bell appears firm in its stance, indicating that it is unlikely to reinstate online trading for Access stocks in the foreseeable future.
Sturgess, however, remains unimpressed, describing the situation as “nanny-state, heavy-handed stuff” and arguing that decisions about trading risk should ultimately be left to individual traders.
