star dust
Member of DD Central
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Post by star dust on Aug 1, 2019 12:59:14 GMT
"small scale retail investors".......... can you quantify/offer a range of figures for that star dust ? I got out of Lendy completely unscathed (not so COLL!) but am following this saga with interest and would be very interested in what you would designate as small scale retail investors/what invested amounts constitute this group? tbh I'd have thought people with, say, £100 or less should perhaps just kiss it goodbye and think themselves V lucky it wasn't considerably more? Well perhaps that’s best left self-defined. There wasn’t a similar one for Lendy but if you look at the COL poll -
- numerically most are in the lower echelons of funding. Let’s face it too affordability can be a very personal issue it’s impossible to judge or understand with limited information from the outside. What someone may spend on a meal out, might pay the frugal from necessity’s food bill for a month; one person’s £100 could be harder to lose for that person than someone else’s £100k – and far be it for me to suggest anyone should have to lose anything and “think themselves V lucky”. There are and have been no shortage of warnings on this site about only investing what you can afford (albeit painfully) to lose, but it seems from anecdotal information that isn’t always what people do. My concern is that those with smaller pots are going to be more vulnerable to losing a greater proportion of their funds to the pooled/fixed administration costs such as creditors meetings, meetings with special interest groups, responding to legal or other actions, etc.
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pom
Member of DD Central
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Post by pom on Aug 1, 2019 14:27:09 GMT
"small scale retail investors".......... can you quantify/offer a range of figures for that star dust ? I got out of Lendy completely unscathed (not so COLL!) but am following this saga with interest and would be very interested in what you would designate as small scale retail investors/what invested amounts constitute this group? tbh I'd have thought people with, say, £100 or less should perhaps just kiss it goodbye and think themselves V lucky it wasn't considerably more? Well perhaps that’s best left self-defined. There wasn’t a similar one for Lendy but if you look at the COL poll -
- numerically most are in the lower echelons of funding. Let’s face it too affordability can be a very personal issue it’s impossible to judge or understand with limited information from the outside. What someone may spend on a meal out, might pay the frugal from necessity’s food bill for a month; one person’s £100 could be harder to lose for that person than someone else’s £100k – and far be it for me to suggest anyone should have to lose anything and “think themselves V lucky”. There are and have been no shortage of warnings on this site about only investing what you can afford (albeit painfully) to lose, but it seems from anecdotal information that isn’t always what people do. My concern is that those with smaller pots are going to be more vulnerable to losing a greater proportion of their funds to the pooled/fixed administration costs such as creditors meetings, meetings with special interest groups, responding to legal or other actions, etc. Not sure how you think costs that would have to be allocated proportionately could ever affect people non-proportionately. As for the question of what would be considered small scale retail, whilst there is probably an argument that Lendy muddied the waters by only asking investors to self-classify at a late stage, and should not have "allowed" people to invest so much, theoretically none should have more than 25k because that would imply overall net wealth of 250k putting them in HNW territory - and potentially much less if using other platforms. Which I suppose might mean that retail customers could have an argument for compensation given for lack of warnings, so might actually end up in a better position proportionately. Who knows.
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