Exit from QAA account investments queued. (AC)

Related to what I said many many pages ago, if it is a pro-rata type distubution, that doesnt mean it bad or good. We can't make that judgement without more data, as it could simply be that QAA withdrawals will now take 72 hours instead of 0.02 seconds as they used to. We simply won't know until Thursday hopefully its going full swing then.

"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  ... Those loan agreements would be able to continue to benefit from the relevant Access Account provision fund."

Wonder how that is going to work. Have the insurance without paying the premium? 

Spot on Mousey . Furthermore, we had clarification from both stuartassetzcapital and chris back in December that the access account withdrawal queue was indeed a proper FIFO queue, where withdrawal requests were time stamped and processed in order. 

See highlighted text below:

I think AC's axing of the QAA's "First In - First Out" queue once the inevitable "run" took hold was the only fair and reasonable option. It certainly shouldn't come as any great surprise (eg. see here from June 2018 and similar warnings from many others).

Imagine the outcry (as Funding Circle previously experienced) of most QAA lenders (plus 30DAA / 90DAA lenders after the requisite 30 / 90 days notice period) sitting behind a glacially-moving multi-million £ queue and seeing the few lucky ones at the front getting repaid in full. Instead, the FIFO queue has been put aside and all lenders in the new “mass queue” will get a trickle of pro-rata micro-repayments whenever cash is received into the Access Accounts from borrowers (plus any new lender investments).

Given the months or years it will now take fully to cash-out a QAA holding, a better option for some lenders may be to take the suggested-at future option to transfer their underlying QAA loan holdings into the MLA and (presumably) receive the headline interest in full whilst carrying the underlying risk of loan default. Trusting that the QAA's Provision Fund will be able to cover future potential losses in full after the sort of "black swan" event we're experiencing may be somewhat optimistic!

It has to be pro-rata to value of £ holding in the withdrawal "mass queue" / pool (as per lender voting, etc.). Nothing else makes sense, nor could be justified as fair to all lenders.

If I am interpreting yesterday's FAQ correctly, the proposed approach means that if a QAA withdrawal request made today takes longer than 30 days to fulfil, a withdrawal request from by a 30DAA investor made today would be merged (after 30 days) into the same queue/pool (as the QAA withdrawal request made today) and thenceforth receive the same priority as the QAA request.

Whilst waiting in this withdrawal queue/pool, the QAA investor would receive 4.1% pa interest and the 30DAA investor 5.1% pa.

Is the above interpretation correct?

If this is the case (leaving the legalities of this approach aside for a minute) after 30 days waiting shouldn't the rate of interest for the QAA investor be increased to that for a 30DAA account, which is thenceforth receiving an equivalent priority in the withdrawal queue/pool? (and after 90 days waiting, a QAA investor should get an increased rate of interest to that for a 90DAA account).

No doing so is surely unfair to the QAA investor in this proposed approach.

No, you accepted the lower interest rate in return for enjoying instant access during normal market conditions. The T&Cs made clear that normal market conditions could not be relied upon to continue in perpetuity. It’s been obvious for at least a month that very abnormal things were afoot in the wider world. You cannot blame AC for your own acceptance of risk.