bg
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Post by bg on Nov 5, 2018 19:05:48 GMT
I've just had a big sale and my QAA swept funds balance has gone to over £130k. As far as I was aware the limit on the amount that could be swept was £100k. Does anyone know if this limit has been lifted?
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dc848
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Post by dc848 on Nov 5, 2018 19:22:29 GMT
I've just had a big sale and my QAA swept funds balance has gone to over £130k. As far as I was aware the limit on the amount that could be swept was £100k. Does anyone know if this limit has been lifted? £200,000 Current maximum direct investment per person
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bg
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Post by bg on Nov 5, 2018 19:23:17 GMT
I've just had a big sale and my QAA swept funds balance has gone to over £130k. As far as I was aware the limit on the amount that could be swept was £100k. Does anyone know if this limit has been lifted? £200,000 Current maximum direct investment per person These funds are not a direct investment, they are swept.
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bigfoot12
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Post by bigfoot12 on Nov 5, 2018 19:39:42 GMT
I've just had a big sale and my QAA swept funds balance has gone to over £130k. As far as I was aware the limit on the amount that could be swept was £100k. Does anyone know if this limit has been lifted? T&Cs on the website concur with you, £200k direct and £100k swept limit. Might you have a direct investment of £50k and a swept of £80k as the QAA shows the total?
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bg
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Post by bg on Nov 5, 2018 19:41:42 GMT
I've just had a big sale and my QAA swept funds balance has gone to over £130k. As far as I was aware the limit on the amount that could be swept was £100k. Does anyone know if this limit has been lifted? T&Cs on the website concur with you, £200k direct and £100k swept limit. Might you have a direct investment of £50k and a swept of £80k as the QAA shows the total? No, a direct investment of £200k and swept of £130k. Total £330k. I wouldn't be fussed but if it suddenly corrects and I have £30k uninvested at midnight then I lose £300 of the bonus.
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Post by crabbyoldgit on Nov 5, 2018 21:37:08 GMT
Something i have been thinking about for a while and just know I am being more than a bit thick, but here goes.
Money in the cash account is uninvested and I think held in the client account with an institutional bank and hence covered by the government's savers guarantee up to I think £80000. But I believe you can not turn off sweeping for individual accounts , so should ac go bust would the money be considered to be in the qaa or the cash account, it appears in both on the home page and hence covered or not. I would guess not, but could one hope.
Infact should money in the cash account really be able to be swept at all.
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Post by chris on Nov 6, 2018 7:35:02 GMT
You can choose not to sweep money in the cash account. If funds are swept from your cash account into the QAA then they are invested funds and not held in the client money account (beyond the cash portion of the QAA).
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bigfoot12
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Post by bigfoot12 on Nov 6, 2018 7:59:29 GMT
I think that you are confusing protections provided by the bank AC is using with protection provided by AC. .. and hence covered by the government's savers guarantee up to I think £80000. I think it is £85,000 but that total will include any money you have with the same institution. But that is cover in case the deposit taking institution goes bust, not AC. If AC goes bust, and assuming that all their systems have worked as they should, then any amount of money in the cash account should have been segregated and assuming that the bank they used hasn't gone bust at the same time your cash deposit should be safe. Of course if they go bust something somewhere has probably gone wrong. ...qaa or the cash account, it appears in both on the home page and hence covered or not. I would guess not, If it is swept some portion of it is still held on a deposit at a bank. I'm not sure what happens then if the bank goes bust. AC should get some protection, but maybe that is £85,000 split across all investors.. But I believe you can not turn off sweeping for individual accounts , so should ac go bust would the money be considered to be in the qaa... In the QAA you can turn sweeping off, or on just for the investment accounts, but not cash, or on for all - your choice. But you need to consider are you worried about AC failure, or bank that AC is using failing. Edit: crossed with Chris |
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bg
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Post by bg on Nov 6, 2018 9:53:48 GMT
You can choose not to sweep money in the cash account. If funds are swept from your cash account into the QAA then they are invested funds and not held in the client money account (beyond the cash portion of the QAA). Hi chris. Has the £100k sweep limit now been raised?
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Post by chris on Nov 6, 2018 10:09:27 GMT
You can choose not to sweep money in the cash account. If funds are swept from your cash account into the QAA then they are invested funds and not held in the client money account (beyond the cash portion of the QAA). Hi chris . Has the £100k sweep limit now been raised? No, but it looks like there may be a bug or timing issue in enforcing it.
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kaya
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Post by kaya on Nov 8, 2018 10:03:48 GMT
I imagine that this Q is answered somewhere, if I knew where to look...
...what happens to funds in suspended loans when making a withdrawal from QAA or 30 day account? Thanx.
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IFISAcava
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Post by IFISAcava on Nov 8, 2018 10:18:26 GMT
I imagine that this Q is answered somewhere, if I knew where to look...
...what happens to funds in suspended loans when making a withdrawal from QAA or 30 day account? Thanx.
The cash buffer/PF takes the loans back ("in normal circumstances") so you have full access. Not sure what happens in difficult times i.e. is all the money stuck, does it go to usual sale alongside MLIA, do you get stuck just with the unsellable/suspended loans. Anyone know?
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ilmoro
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Post by ilmoro on Nov 8, 2018 10:32:20 GMT
Withdrawals are covered by the provision fund if there is insufficient demand within the account to allow lenders to take funds out. So the PF would take on the suspended loan parts to allow the withdrawal, subject to there being sufficient cash in the fund. If there was a high level cash flowing out and the PF was insufficient then cash in suspended loans couldn't be withdrawn and would be stuck. Technically in a 'run situation' last out would end up with all the suspended loans but AC would freeze the account before that happened. That's why the instant access is subject to normal market conditions.
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dandy
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Post by dandy on Nov 8, 2018 10:53:14 GMT
I dont think the PF works in such a fluid way so as to be buying and selling suspended loans on effectively every transaction in/out of QAA. AC just ensure that there is enough of the PF 'ring fenced' to cover expected losses on suspended loans. So if loan 1 (£500k) is suspended, and the max expected loss is £100k, then the PF will ring fence £100k to enable those loans to be traded as if they were not suspended.
Details of the 'value of suspended loans' within the QAA and the 'amount of cash ringfenced against them' have never been provided despite request. Technically this makes the account a black box as far as risk assessment goes but it could easily be made a white box. As things stand, and the lack of this info, we have no way of knowing the prospect of frozen funds/PF wipeout.
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