Royal Mail: brokers complain about millions in lost commissions

clock •

City stockbrokers are considering lodging an official complaint after the government's decision to reject the majority of applications for Royal Mail shares cost them millions in lost commissions.

The brokers argue that the decision to reject orders rather than scale them back was unfair on them as well as on investors. They plan to lodge their complaint with Vince Cable, the Business Secretary, or the business minister, Michael Fallon, the Sunday Telegraph reports. Both ministers will today review the launch of Royal Mail's historic share offer, the allocation of shares and the conditional trading so far. After being priced at 330p a share, the stock rose 38% on the first day of trading. Applications for shares by 500 institutional investors were rejected, along with any indiv...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Budget 26: Stamp Duty on shares to be swapped for Securities Transfer Tax

Budget 26: Stamp Duty on shares to be swapped for Securities Transfer Tax

By late 2027

Patrick Brusnahan
clock 28 October 2026 • 1 min read
Investment tax relief rises by smallest amount in four years amid recent Budget measures

Investment tax relief rises by smallest amount in four years amid recent Budget measures

Bowmore Financial Planning research

Jack Roach
clock 28 October 2026 • 2 min read
Defaqto to launch rating for newer funds and portfolios

Defaqto to launch rating for newer funds and portfolios

Combines Defaqto and RSMR expertise

Jen Frost
clock 27 October 2026 • 2 min read