taffy
Posts: 148
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Post by taffy on Dec 29, 2019 11:42:40 GMT
Has anyone any idea when we`ll be able to transfer funds from our cash accounts to our banks? Now I have several thousand pounds there, it would be nice for it to be earning some interest rather than just sitting there doing nothing. I hadn`t envisaged making interest free loans to anyone when I invested through the site.
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arby
Member of DD Central
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Post by arby on Dec 29, 2019 14:36:19 GMT
Has anyone any idea when we`ll be able to transfer funds from our cash accounts to our banks? Now I have several thousand pounds there, it would be nice for it to be earning some interest rather than just sitting there doing nothing. I hadn`t envisaged making interest free loans to anyone when I invested through the site. At least until the administrators are confident they don't need to use that money to finance recovery efforts on other loans. Cash flow is critical and if loans aren't repaying then our held money is the cash reserve. If incoming cash flows were certain then FS wouldn't have folded in the first place.
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pip
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Post by pip on Dec 29, 2019 14:46:29 GMT
Has anyone any idea when we`ll be able to transfer funds from our cash accounts to our banks? Now I have several thousand pounds there, it would be nice for it to be earning some interest rather than just sitting there doing nothing. I hadn`t envisaged making interest free loans to anyone when I invested through the site. Taffy....bad news for you. After lenders agreed to that awful proposal administrators put to lenders, that money sitting in your account just means that you are an unsecured creditor to that amount. Rather than worry as to whether you are losing out on interest the more pertinent issue I suspect is whether you will ever be able to withdraw that money, and if so how much the administrators take first.
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taffy
Posts: 148
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Post by taffy on Dec 29, 2019 17:08:13 GMT
Are you suggesting the following statement by F.S. in it`s Terms & Conditions, which is obviously supported by the F.C.A. which regulates them is incorrect? Heaven forbid!
"The Financial Services Compensation Scheme (FSCS) seeks to protect the cash held in your FundingSecure Limited (‘FSL’) client money account (up to a maximum amount of £85,000)"
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pip
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Post by pip on Dec 29, 2019 17:12:47 GMT
Are you suggesting the following statement by F.S. in it`s Terms & Conditions, which is obviously supported by the F.C.A. which regulates them is incorrect? Heaven forbid! "The Financial Services Compensation Scheme (FSCS) seeks to protect the cash held in your FundingSecure Limited (‘FSL’) client money account (up to a maximum amount of £85,000)" The client bank account is protected by the FSCS but your right to the proceeds of that account are not. I.e the FSCS protects you from a bank failure not a platform failure. So no help for you I am afraid. Lenders agreed to allow administrator to treat them as creditors, hence you are now an unsecured creditor.
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criston
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Post by criston on Dec 29, 2019 17:32:56 GMT
This was stated on the facebook FSAG.
'FSAG's position was only ever to be accepted as creditors for POTENTIAL LOSSES, in ADDITION to our rights as beneficiary of the trust assets. This was done to facilitate our mission of gaining control of the CC and was made perfectly clear, several times, in earlier threads on the subject. It was also made perfectly clear that, only the courts could ultimately decide whether or not the lenders are beneficiaries or the loan trusts. Most people seemed to understand this and supported FSAG's position, which ultimately led to a CC with 4 lender/investor seats vs 1 creditor.'
This appears to be a contradiction to what is being intimated above, so who is right ?
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Dec 29, 2019 17:40:04 GMT
This was stated on the facebook FSAG. 'FSAG's position was only ever to be accepted as creditors for POTENTIAL LOSSES, in ADDITION to our rights as beneficiary of the trust assets. This was done to facilitate our mission of gaining control of the CC and was made perfectly clear, several times, in earlier threads on the subject. It was also made perfectly clear that, only the courts could ultimately decide whether or not the lenders are beneficiaries or the loan trusts. Most people seemed to understand this and supported FSAG's position, which ultimately led to a CC with 4 lender/investor seats vs 1 creditor.'This appears to be a contradiction to what is being intimated above, so who is right ? That's FSAG position. FSAG position is what they are arguing for, it isn't necessarily the position that exists or will exist. That is to be determined by the opinion of counsel and if unclear/not acceptable by the Courts. That is inline with FSAG position. Until the opinion of counsel/courts had been received there is no definitive answer & all comments stating anything are speculation. Funds in the Client account are separate to the assets of FS and remain so until definitive opinion on the errors in the management of CM & the ownership of Trust assets (linked) is received.
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criston
Member of DD Central
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Post by criston on Dec 29, 2019 17:46:29 GMT
Is there any difference in status between funds held in clients accounts as follows -
Funds in client accounts before administration.
Funds in client accounts after administration, from repayments.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Dec 29, 2019 17:52:20 GMT
Is there any difference in status between funds held in clients accounts as follows - Funds in client accounts before administration. Funds in client accounts after administration, from repayments. Unclear. The issue with the client account AIUI is that company funds were not kept segregated correctly so the CASS rules were broken. It is not clear to me whether pre-admin funds have been kept separate from post admin funds. Post admin funds are in a new CM account, not sure where pre-admin funds are. A quick read of the admin report didn't seem to make it clear but I may have missed it.
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pip
Posts: 542
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Post by pip on Dec 29, 2019 17:54:10 GMT
This was stated on the facebook FSAG. 'FSAG's position was only ever to be accepted as creditors for POTENTIAL LOSSES, in ADDITION to our rights as beneficiary of the trust assets. This was done to facilitate our mission of gaining control of the CC and was made perfectly clear, several times, in earlier threads on the subject. It was also made perfectly clear that, only the courts could ultimately decide whether or not the lenders are beneficiaries or the loan trusts. Most people seemed to understand this and supported FSAG's position, which ultimately led to a CC with 4 lender/investor seats vs 1 creditor.'This appears to be a contradiction to what is being intimated above, so who is right ? That's FSAG position. FSAG position is what they are arguing for, it isn't necessarily the position that exists or will exist. That is to be determined by the opinion of counsel and if unclear/not acceptable by the Courts. That is inline with FSAG position. Until the opinion of counsel/courts had been received there is no definitive answer & all comments stating anything are speculation. Funds in the Client account are separate to the assets of FS and remain so until definitive opinion on the errors in the management of CM & the ownership of Trust assets (linked) is received. I wouldn’t say the law of administration is pure speculation. Of course there may be legal challenges to lenders being treated as unsecured creditors or the FCA may get involved to protect investors. No sign of either of these though.
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benaj
Member of DD Central
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Post by benaj on Dec 29, 2019 17:56:20 GMT
Has anyone any idea when we`ll be able to transfer funds from our cash accounts to our banks? Now I have several thousand pounds there, it would be nice for it to be earning some interest rather than just sitting there doing nothing. I hadn`t envisaged making interest free loans to anyone when I invested through the site. It would be very nice if all investors have a very good read of the Joint Administrator proposal (12th Nov) and the FAQ (14th Nov), pray this mess will be resolved as quickly as possible and the administrators will safeguard investors entitled assets in accordance of FCA ruling on CASS pooling.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Dec 29, 2019 18:16:24 GMT
That's FSAG position. FSAG position is what they are arguing for, it isn't necessarily the position that exists or will exist. That is to be determined by the opinion of counsel and if unclear/not acceptable by the Courts. That is inline with FSAG position. Until the opinion of counsel/courts had been received there is no definitive answer & all comments stating anything are speculation. Funds in the Client account are separate to the assets of FS and remain so until definitive opinion on the errors in the management of CM & the ownership of Trust assets (linked) is received. I wouldn’t say the law of administration is pure speculation. Of course there may be legal challenges to lenders being treated as unsecured creditors or the FCA may get involved to protect investors. No sign of either of these though. Nothing I have seen says lenders are being treated as unsecured creditors. The administrators have been quite clear that they are seeking Counsel opinion/Court direction on the treatment of Trust assets.
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