£SOM Dividend payment delay issue.

Monday, Dec 03 2018 by
2

Hello,

This is the response I got from my IR contact at Somero Enterprises Inc (LON:SOM) when I asked what could be the possible cause for the delay in payment.
I replied, that this kind of thing will impact sentiment and as such they should take it seriously.
I have left her email on in case any other holders which to express their frustration.
Regards
Paul

Mr. Hawkins,

We do pay in USD as reflected in the announcement and we get questioned on this with nearly every dividend payment. I have again reached out to our Registrar on your specific inquiry and they provided the following explanation:

What is likely the case is the cheque will have gone to the brokers. I don’t see AJ Bell on the register so it is likely they hold their shares through someone like Pershing Nominees.

So what will happen is we pay Pershing a cheque, they wait until it clears before passing this onto A J Bell, who then in turn passes this onto the underlying holder. As you can imagine this can sometimes take a little while.

Unfortunately, neither we nor our Registrar have any control over the processing of the dividend payments once it is released to the brokers. The relationship between A J Bell and their custodian is not something that we have visibility into nor the ability to influence.

I’m sorry that I can’t be of further help on this matter. I would hope that your broker has received and processed the dividend payment by now as it seems impossible that it would take this long for funds to clear.

Kind regards,


_______________

JENNIFER OLIVER
Director of Legal & Corporate Affairs
Investor Relations & HR

Somero Enterprises, Inc.
14530 Global Parkway
Fort Myers, FL 33913 USA
p: +1-239.210.6529
m: +1-603.540.6010
Oliver, Jennifer


Filed Under: Dividend, Shareholder Rights,

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28 Posts on this Thread show/hide all

Aislabie 4th Dec 9 of 28
2

I have an AJBell account and I too have not yet received my SOM dividend. I can see no reason at all why this absurd delay is not entirely the responsibility of AJBell.
- they are a large organization and should have a USD account into which these payments should be made and cleared. Three or at most five days to have cleared funds in that account would be reasonable. If not they should be in serious questions with their bank or other potential banks about their cash management facilities.
- the FX transfer should give good funds again in a maximum of five days. If not, then talk to the many companies in London who are on the lookout for this business.
Somebody has my money. It is not Somero and it is not me, everything else is AJ Bell’s responsibility and as a company looking for a squeaky clean IPO a public statement by AJBell’s management should demonstrate exactly who has benefitted from this cash for the past several weeks.

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leoleo73 6th Dec 10 of 28
1

AJ Bell tried to fob me off about this too and also ignored my request to report on other missing dividends. I have now made a formal complaint.

Has anybody tried switching from AJ Bell to e.g. HL? How long were they without access to trade?

(I recently completed a transfer of a Child Trust Fund from F&C's service to HL. There was a 2 week regulatory cooling-off period, one week for the instruction to be seen by F&C, another week to sell and settle then 3 working days until HL had the money and let me deal. I thought that was pretty good.)

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herbie47 6th Dec 11 of 28

In reply to post #425138

If it's anything like their dividend payments I would not hold your breath. I don't know, switching brokers seems to take a very long time, I have seen reports about Barclays which took many months.

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herbie47 6th Dec 12 of 28

In reply to post #424243

I have received the odd US$ cheque, one this year took about 4 working days to clear I don't see why it took 6 weeks for yours. Maybe it is the amount, mine was quite small about $25.

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sharw 6th Dec 13 of 28

iii allow you to keep money in 7 currencies including sterling, euros and US$. I think this comes from the TDW platform that they took over. Dividends are credited in their own currency and it is up to you to convert it if you wish, which can be done at any time. I only have experience of IAG (ex BAY) dividends but they seem to appear in the a/c much more promptly now.

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leoleo73 7th Dec 14 of 28
1

Still no dividend. AJ Bell are now blaming the registrars, tell me yesterday that:

All  funds have to be cleared from the receiving bank, currently the registrars receiving bank has a back log of cheques. 

Since the registrars choose who to bank with, this seems to contradict hawkipa's response from the IR:

neither we nor our Registrar have any control over the processing of the dividend payments once it is released to the brokers
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grumpy5 7th Dec 15 of 28

I am guessing you lot will not be chasing the AJ Bell IPO!!! ;-)
On a slightly different tack, some heavy institutional selling has made the shares even more of a bargain.

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bluecurve 7th Dec 16 of 28

In reply to post #425448

Yes, It was for about $40,000 I remember. I think in a situation like this that Somero Enterprises Inc (LON:SOM) would have sent a cheque to the custodian for the full amount of the dividend for all shares held in it's custody. Hence, likely to be in the $,000s. The custodian then "divis" out the correct amounts to each account (pardon the pun)!

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bluecurve 7th Dec 17 of 28

In reply to post #425578

Looks like the AJ Bell (LON:AJB) is up 33% on the IPO price. Plenty of volume at the 215p level. I bought some in the IPO but was scaled back by over 57%. Won't be chasing it at this level, but looks like it will be popular.

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hawkipa Tue 7:46am 18 of 28
1

Morning all, Just had the following from AJ Bell. I have immediately forwarded on to Jennifer at Somero. It does highlight a few issues to me, one of which being the charge imposed by AJ Bell for FX payments, when they clearly don't pay for the service themselves. BoA will just make a spread trade price for the transaction.
It is not clear who exactly the fault lies with, but it is clear it is an issue and why AJ Bell don't have a USD account is beyond me. I have asked for clarification from AJ Bell on the exact mechanics of the payment process. Will be interesting to see if they expose themselves with regards to an unjustified FX charge.

Finally, any of those affected, please do email Jennifer Oliver as only sustained pressure will result in a change of mindset. Oliver, Jennifer - joliver@somero.com

Regards
Paul

Please be advised, we will not appear on the shareholder register as AJ Bell or as Pershing Nominees (not entirely sure who they are). We
will appear under our nominee name, which is Lawshare Nominees Ltd.

To confirm, we have received the currency cheque. However, this was sent to the bank to clear. The bank then sends this onto the
clearing bank, which in this case is Bank of America. Unfortunately, the delay lies with them, which according to them is because of a
"large backlog of currency cheques". We are continuing to chase as much as possible and hope to have this credited to your account in
due course.

If you have any further queries, please feel free to contact us.

Yours sincerely

Aaron Willsher
Dealing Services Team

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timarr Tue 9:38am 19 of 28

In reply to post #426093

Will be interesting to see if they expose themselves with regards to an unjustified FX charge.

Not sure what "expose" means - the 0.5% FX charge on foreign currency dividends is in their standard rates and charges table, so it's hardly a secret. You sign up for the service, you pay the fees.

Generally, I find AJ Bell FX dividend payments are deposited fairly quickly. For instance the Apple dividend payment date was 15th November and the dividend was in my account the same day (the FX charge took another 4 days to levy). Somero is a consistent outlier which suggests to me that the problem is more likely to lie on their side than AJ Bell's, possibly due to their quaint, old fashioned insistence on using cheques to make the payments.

As an accountholder and a shareholder I certainly don't want AJ Bell introducing new processes and costs just to deal with a specific problem with a specific company, even if that means it could speed up the dividend payment in that instance.

timarr

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simoan Tue 9:56am 20 of 28
1

Hi timarr,

Somero is a consistent outlier which suggests to me that the problem is more likely to lie on their side than AJ Bell's, possibly due to their quaint insistence in using cheques to make the payments. 

As an accountholder and a shareholder I certainly don't want AJ Bell introducing new processes and costs just to deal with a specific problem with a specific company, even if that means it could speed up the dividend payment in that instance. 

I agree that a large part of the blame is with Somero here. What on earth are companies doing sending out currency dividend cheques in this day and age? I confirmed with the registrar that there is no wire transfer option for AJ Bell to use. In particular, Somero is only listed in the UK and so while I'm quite happy for it as a US company to declare dividends in USD, I seen no reason why it cannot pay UK based investors in GBP as other companies do.

HOWEVER, AJ Bell could easily be more  customer friendly and do what other brokers do and pre-credit accounts with the dividend on receipt of the cheque. So once again, they are out of line with industry practice, just as in the FOS case that was found against them relating to "treating customers fairly" with regard to exit charges. 

I'm a shareholder too, but there are clear inadequacies with the company behind the scenes. I won a FOS case against them and they basically ignored the Ombudsman and missed the agreed compensation payment deadline by several weeks. I have now received two cheques one of them for only £23 sent by registered mail at a cost of £6.50 for one account. I received a second larger cheque for another account about a month later, again sent by registered post under duress from the Ombudsman and this included an additional £50 fine imposed for late payment. Honestly, behind the facade of the fancy website the back office is a mess. As such, I have limited the number of accounts and amount of funds I hold with the company.

All the best, Si


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timarr Tue 10:33am 21 of 28
1

In reply to post #426148

Hi Si

That's interesting. My experience of AJ Bell is quite different and, of course, we're all biased by our experiences. What we can definitely say is that one of us is a victim of base rate neglect :-/

As for Somero, while I'd agree it's odd that AJ Bell don't have a streamlined process for dealing with this given that they don't I can't see that this constitutes a case for doing so. Rather Somero need to move off late sixteenth century technology - although I suppose that gives them the problem of what to do with their crack team of quill wielding cheque writers :-)

timarr

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simoan Tue 11:33am 22 of 28

In reply to post #426173

That's interesting. My experience of AJ Bell is quite different and, of course, we're all biased by our experiences.

Yes, very true, but you only really find out how good a company is when something goes wrong and/or how they act on behalf of their customers. I have been with company right back to the original Sippdeal/ James Brearley days and have had numerous problems with them over the years including losing entitlement to right issues etc. because of their poor service.

The fact remains that they sucked in customers with fee free accounts and then imposed a new fixed charging structure on those accounts whilst still imposing exorbitant transfer out/exit charges. I don't know about you but I don't like feeling like a frog luxuriating in a pot of warm water... To make matters worse and infuriate me even further, we received a letter from Andy Bell telling us that the changes were "revenue neutral", talk about insulting peoples intelligence! And every other broker who has ever done this (to my knowledge) has provided a fee free transfer out period, but not AJ Bell. 

As for Somero, while I'd agree it's odd that AJ Bell don't have a streamlined process for dealing with this given that they don't I can't see that this constitutes a case for doing so. Rather Somero need to move off late sixteenth century technology - although I suppose that gives them the problem of what to do with their crack team of quill wielding cheque writers :-)

I thought that's what I said? :-) IMHO part of this problem lies with Somero Enterprises Inc (LON:SOM) paying dividends by  USD cheque. It's simply not good enough as we enter 2019.

All the best, Si

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slopsjon Thu 11:33am 23 of 28

"Further to the message I sent yesterday, our Dividends Team have confirmed that the delay still lies with Bank of America, who are the clearing bank we use for processing currency cheques. Due to the delays experienced with this dividend and a couple of others, we have agreed new services with our bank that should allow funds from cheques to be paid to us much quicker going forward.

Some brokers pre-fund dividend payments prior to receiving the funds. However this is not a service that we offer I'm afraid. "




So there was something that AJ Bell could have done to speed this up.

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simoan Thu 11:42am 24 of 28

In reply to post #427148

So there was something that AJ Bell could have done to speed this up.

Did you not read my post above? This is not a new problem. it is something I have been rattling AJ Bell's cage about for several years to no avail. At least now it seems others are complaining too and we are at last getting some traction.

All the best, Si

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slopsjon Thu 1:49pm 25 of 28

In reply to post #427163

Yes I did read the above but it didn't include the bold I received from them this morning.

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simoan Thu 1:59pm 26 of 28

In reply to post #427288

Yes I did read the above but it didn't include the bold I received from them this morning.

Yes, it's new news, and a small positive, but the delay with this Somero dividend is exceptional. It usually takes 3 weeks or so, which is still crap. I assume even with this change of arrangement with their bank that the dividend will still get credited much later than by other brokers. So a small victory but it would be better if they just admitted they were out of line with industry practice and pre-credited the dividend like everyone else. No sign of that yet.

All the best, Si

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simoan Thu 8:45pm 27 of 28
3

In reply to post #427298

Well, I finally received the Somero Enterprises Inc (LON:SOM) dividend today in my account. I just love the way they back date it on the cash statement page, so you have to go all the way back to 17/10 to find it.

Si.

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jjis Fri 8:04am 28 of 28

In reply to post #424378

This is weird & seemingly not a problem restricted to AJ Bell. On checking an account we have with X-O as of today the Somero Enterprises Inc (LON:SOM) dividend has still not been credited, even though an earlier poster No 8 said they (X-O) had credited their SOM dividend promptly. Weirdly on checking back I note the final dividend & special in April were credited on the payment date.

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