sd2
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Post by sd2 on Mar 15, 2020 11:27:10 GMT
Have they said how long they are closing for withdrawals. I am looking to put mine (£2100 no sniggering!) into the stockmarket. Not a lot I know but everything helps when you are relatively poor.
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sd2
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Post by sd2 on Mar 15, 2020 11:37:10 GMT
But you are getting a much lower rate of interest than if you had done this directly in the MLA, in return for the privilege of instant/quick access which has now been suspended. Assetz should offer investors the option of converting their holdings to loans in the MLA where they would get more interest and clarity over repayment times but some risk of losses. I don’t think that’s feasible to make happen. What is feasible is allowing QAA transfer to 30DA or 90DA. Though I’m not sure moving the problem into the 30DA account is a great help. 90DA would be better. As I’ve said elsewhere and several weeks ago best of all would be an urgent introduction of a 180DA and/or 360DA with an attractive rate. PLUS I’d add another “block” to the QAA. One at the front end. That is stop new investments into the QAA account. At least until it’s a much smaller percent of the access accounts. And going forward to rely on it much less. Say 10% of all access accounts and to ration it through pricing (reduce that rate) and/or better caps to the max individuals can have in it Much further down the line a reduction in reliance on 30DA would need to be pursued too. Managing liquidity without robust and highly skilled modelling of liquidity scenarios is not easy and especially if you don’t have the usual Treasury capacity to go to external always there liquidity providers of last resort - large commercial banks followed by the Bank of England. I think allowing people to move money into the QQA would be a better option as it means they will have to pay out less interest. Platform failure should be are main worry. At the end of the day withdrawals will still be queued. So no one will be able to sell out any quicker
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r00lish67
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Post by r00lish67 on Mar 15, 2020 11:41:18 GMT
Have they said how long they are closing for withdrawals. I am looking to put mine (£2100 no sniggering!) into the stockmarket. Not a lot I know but everything helps when you are relatively poor. Assuming you mean cash withdrawals of unswept cash to a linked bank account, then they have said the backlog will be cleared on Monday. So if you withdraw now it should be Monday/Tuesday, I'd have thought..
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Post by dan1 on Mar 15, 2020 12:11:12 GMT
Simply put, Assetz have been caught with their pants down. None of this was unforeseen, and I would have expected them to be better prepared for when the inevitable closure/queuing to the Access accounts was necessary. Just to be crystal clear, I have only nominal funds in the Access accounts, none of which I've requested for withdrawal. I do have cash funds which I requested for withdrawal on Wednesday which I'm still waiting for and my initial reaction to the block/delay (call it what you will) is that Assetz have run out of money. And again, I've no issue with liquidity running dry, it's to be expected given the extraordinary circumstances and, incidentally, why I withdrew in the run up to the Access closure. Whilst I agree that cash withdrawals shouldn't in theory have been impacted by any of this, I think if we all receive them on Monday as we have been assured we will, then we might as well draw a line under it. It'll have still only been 3 working days (if the latest unprocessed withdrawals are Wednesday, mine is) Other than that, as you say liquidity in the QAA was always going to be hit by something. I expected it to be something more trivial than this, but this'll certainly do. I think the best frame of mind to adopt now for anyone with 30d/90d investments, (or indeed QAA investments yet to be withdrawn) if you haven't already is to assume that those loan holdings are now really yours. Anything else that re-emerges in terms of liquidity would be a big bonus. I agree with your synopsis. Rationally speaking, I expect nothing is amiss but that really is missing the point. This business is all about confidence and Assetz have just shot themselves in both feet unnecessarily (in my opinion, of course) - just look at the dozens of posts on this topic over the last few days (of which I admit I've not read them all). Ultimately, this will severely impact on future investment into both the Access accounts and MLA - my guess is that what they've just gained in terms of investment from the BBB, they've lost in future investment from retail lenders.
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m2btj
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Post by m2btj on Mar 15, 2020 12:25:23 GMT
The collapse of commerce as we know it is looking a real possibility, & we won't have any money to talk about on this forum! Airlines, travel, pubs, restaurants, sport, entertainment, retail, etc, etc, are all looking at financial collapse. We're walking toward a financial Armageddon!
Where's the leadership coming from?
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james21
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Post by james21 on Mar 15, 2020 16:37:38 GMT
Stuart. Please consider increasing the current promotion to two and a half percent to bring in money quickly and advertise well
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Post by nutfield on Mar 15, 2020 16:58:19 GMT
Perhaps this is a consequence of having rather illiquid bricks-and-mortar assets as the "assets". Maybe the new ISA season cash influx will ride to the rescue....
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Post by gravitykillz on Mar 15, 2020 19:23:30 GMT
Yes the isa season will solve these problems.
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sqh
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Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Mar 15, 2020 21:26:43 GMT
Yes the isa season will solve these problems. I've got a 20k ISA transfer going into AC this week. I'll be looking for a few discounted bargains in the MLA.
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Post by stuartassetzcapital on Mar 15, 2020 21:53:39 GMT
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rscal
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Post by rscal on Mar 16, 2020 7:32:46 GMT
From the FAQs:
Does this mean MLA trades cannot happen now where a seller would recieve proceeds as 'swept idle funds' and a buyer would be relying on their own 'swept idle proceeds' balance to do so?
[No one uses 'cash' anymore]
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littleoldlady
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Post by littleoldlady on Mar 16, 2020 8:00:57 GMT
But you are getting a much lower rate of interest than if you had done this directly in the MLA, in return for the privilege of instant/quick access which has now been suspended. Assetz should offer investors the option of converting their holdings to loans in the MLA where they would get more interest and clarity over repayment times but some risk of losses. I don’t think that’s feasible to make happen. Quote: "We are also working on a way to let investors choose to permanently leave the Access Accounts with both their share of the uninvested cash and their loan investments if they so choose and we will advise on this new function shortly." IMO there is a strong case for taking this option as soon as it is available. I do not see how the access accounts can ever return to normal conditions, when deposits equal or exceed withdrawals. However the fact that AC have not bitten the bullet and just gone ahead with doing this for everyone suggests either an extreme level of optimism or they plan or hope to acquire a huge capital sum from somewhere.
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littleoldlady
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Post by littleoldlady on Mar 16, 2020 8:05:23 GMT
From the FAQs:
Does this mean MLA trades cannot happen now where a seller would recieve proceeds as 'swept idle funds' and a buyer would be relying on their own 'swept idle proceeds' balance to do so?
[No one uses 'cash' anymore]
From looking at "Transactions" it appears that such a sale would result in funds going via the cash account, which AC can not allow to happen in the current lockdown.
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littleoldlady
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Post by littleoldlady on Mar 16, 2020 8:59:38 GMT
They do not say how it will work. Will amounts in notice accounts have to serve their notice?
Edit: I am referring to the proposed conversion of AA funds to MLA holdings.
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SteveT
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Post by SteveT on Mar 16, 2020 9:05:12 GMT
They do not say how it will work. Will amounts in notice accounts have to serve their notice? I’m sure they will, else how would the higher rate of historic interest they’ve received vs QAA be justified?
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