lotus
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Post by lotus on Feb 12, 2016 15:38:52 GMT
I notice that the amount in the provision fund currently stands in excess of £17 million. On the website it states "Money in the Provision Fund is held in a separate company called RateSetter Trustee Services Ltd." However, the accounts of that company at 31st March 2015 show that it has Cash in the bank of only £13,742.
I suspect that the money is NOT actually held by that company as it states that it's business is the "administration of the Provision Fund Trust". Does this mean that the cash is actually held elsewhere in some trust? If so who are the trustees?
It would certainly be nice to know EXACTLY where the fund is held, as one of the main "comforts" of RS is the provision fund.
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Post by propman on Feb 12, 2016 18:11:16 GMT
It is normal to only show assets beneficially owned in a company's accounts. The PF is held on Trust for the lenders, so would not normally be shown.
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pikestaff
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Post by pikestaff on Feb 12, 2016 18:37:40 GMT
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Post by westonkevRS on Feb 12, 2016 18:43:43 GMT
Actually the structure of the Provision Fund has recently changed, as per this blog (the link might not work, its in the members area within notifications): members.ratesetter.com/static/images/Provision%20Fund%2016%20December%202015.pdf" The Provision Fund is changing from being a trust to a legal company called RateSetter Trustee Services Limited. This change will not affect the day-to-day operation of the Provision Fund, nor
reduce the level of protection it offers to RateSetter investors. Borrowers will continue to pay into the Provision Fund and it will continue to repay investors if a borrower misses a payment." So it isn't legally a trust anymore. The notification goes into a lot more detail, and was discussed quite deeply on another thread at the time. But essentially the fund now sits on RateSetter's balance sheet, albeit with strict rules and governance. Kevin.
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agent69
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Post by agent69 on Feb 12, 2016 18:54:16 GMT
Actually the structure of the Provision Fund has recently changed, You mean it's no longer in a big brown envelope in your garden shed?
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jonah
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Post by jonah on Feb 12, 2016 19:54:34 GMT
I assume that the back of the sofa is now also less lumpy.
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am
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Post by am on Feb 12, 2016 20:08:36 GMT
It is normal to only show assets beneficially owned in a company's accounts. The PF is held on Trust for the lenders, so would not normally be shown. It would still be nice to know where the money is. We would then know whether we have to worry about a deposit-taker going bust.
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jonah
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Post by jonah on Feb 12, 2016 21:12:03 GMT
Given that possibility, surely those bonds would provide some coupon. Who gets that cash I wonder?
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Post by westonkevRS on Feb 12, 2016 22:33:11 GMT
Given that possibility, surely those bonds would provide some coupon. Who gets that cash I wonder? All interest and income generated by the Provison Fund investments is paid back into the Provision Fund, as are all recoveries on defaulted loans. The money is segregated, and split across banks, and some is invested. But this is transparency that will be forthcoming, probably at results time for the Provision Fund limited company. Although I'm not part of the process, so this isn't gospel. I'm not in a position to provide further detail here, sorry. Kevin
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jlend
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Post by jlend on Feb 12, 2016 22:33:56 GMT
Actually the structure of the Provision Fund has recently changed, as per this blog (the link might not work, its in the members area within notifications): members.ratesetter.com/static/images/Provision%20Fund%2016%20December%202015.pdf" The Provision Fund is changing from being a trust to a legal company called RateSetter Trustee Services Limited. This change will not affect the day-to-day operation of the Provision Fund, nor
reduce the level of protection it offers to RateSetter investors. Borrowers will continue to pay into the Provision Fund and it will continue to repay investors if a borrower misses a payment." So it isn't legally a trust anymore. The notification goes into a lot more detail, and was discussed quite deeply on another thread at the time. But essentially the fund now sits on RateSetter's balance sheet, albeit with strict rules and governance. Kevin. Did the 3rd director get appointed to the provision fund ?
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Post by westonkevRS on Feb 12, 2016 22:36:45 GMT
Not yet, we knew that would be a difficult and contentious recruitment. As a result that's why the notification didn't specify a date.
Kevin.
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lotus
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Post by lotus on Feb 12, 2016 23:32:49 GMT
Given that possibility, surely those bonds would provide some coupon. Who gets that cash I wonder? All interest and income generated by the Provison Fund investments is paid back into the Provision Fund, as are all recoveries on defaulted loans. The money is segregated, and split across banks, and some is invested. But this is transparency that will be forthcoming, probably at results time for the Provision Fund limited company. Although I'm not part of the process, so this isn't gospel. I'm not in a position to provide further detail here, sorry. Kevin In that case they need to invest in a good high interest account.....like RS??!!
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agent69
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Post by agent69 on Feb 13, 2016 9:57:49 GMT
All interest and income generated by the Provison Fund investments is paid back into the Provision Fund, as are all recoveries on defaulted loans. The money is segregated, and split across banks, and some is invested. But this is transparency that will be forthcoming, probably at results time for the Provision Fund limited company. Although I'm not part of the process, so this isn't gospel. I'm not in a position to provide further detail here, sorry. Kevin In that case they need to invest in a good high interest account I think you can get 5% on the first £2k with TSB
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teddy
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Post by teddy on Feb 13, 2016 12:43:20 GMT
In that case they need to invest in a good high interest account I think you can get 5% on the first £2k with TSB I got in there early when TSB let you open two accounts.
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agent69
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Post by agent69 on Feb 13, 2016 13:32:55 GMT
I think you can get 5% on the first £2k with TSB I got in there early when TSB let you open two accounts. Do you and Andy have a joint account (bugger, showing my age again)
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