alender
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Post by alender on Mar 7, 2021 23:34:50 GMT
The calculations for losses on pro rata are based on the investor doing nothing with the funds. If like me you have used some or all of your funds to buy equities the loses are likely to be a lot greater even if you just bought a FTSE tracker fund. I have managed to get a much better return with money from P2P which has been invested mostly in metal mining companies and big oil on the basis that I want to move from a currency based assets to something more substantial as you cannot print more metal or oil in the ground. Also the far east will continue to buy these and this area will become financially much stronger because of western covid polices, these assets will increase as the $ drops as they are traded in $s. You may not buy this argument but I can prove to the FOM what I did with spare funds so it is not unreasoningly to have expected me invest more if the funds were available.
This will not turn out well for AC if the complainants of pro rata are upheld and the lender has evidence they were intending to purchase Bitcoin with the funds, perhaps some evidence of Bitcoin purchases post lock in. I know a number of people who for a time now have been purchasing and trading Bitcoin for the reasons mentioned above, this has increased since lockdown due to the lack of faith is fiat ccys due to money printing so this in not an unlikely scenario.
There is also the emotional stress caused in the flat rate period by not knowing if you would ever see most of your funds again as it would have taken more that a life time to get repaid, the small investors get out and you are left with the toxic debt and there was a lot of worry about AC collapsing so the scenario of very substantial loses are not unreasonable if the pro rata system continued. I certainly reduced my holidays last year due to lack of funds, not a big deal in the scheme of things but you cannot get these back especially for older people, so another small consequence of pro rata.
Some people could have cancelled house moves with financial and other loses.
Some people could have caneled private medical treatment due to lack of funds or just the fear of losing money due to pro rata. I did consider that I should cancel my private medical insurance and my use of a private dentist during the worst times.
There could also be people who may well have had to borrow money to cover the short full.
In Ian's case he would probably have moved the money to what may well be a safer investment based on track record and LTV with a much better return.
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alender
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Post by alender on Mar 8, 2021 0:32:16 GMT
The calculations for losses on pro rata are based on the investor doing nothing with the funds ...
No they are not. They are based on the assumption that FOS might use 8% as the standard opportunity cost for the period between when the funds should have been returned to the point compensation is paid. That nit assuming they do nothing. That’s assuming they do an 8% something. I don’t work for the FOS before anyone accuses me  (I have no reason to believe alender or ian would stoop to such pathetic responses, but I have had a pathetic response from another poster that I must work for the FCA and someone was accused baselessly with working for Ratesetter / Metrobank). If the sizing of the issue of how much extra capital would have been returned (of the order of 1% or smaller) is broadly correct then whether compensatory interest is 8% pa or 100% is not a game changer. So not worth debating much. The critical piece, if my logic is not flawed, is the additional capital distribution and every indication is that that is small. As I don’t work for the FOS I can’t say I’m right with 100% certainty, but if I had to put a sportsman’s bet on it I’d stick with my sizing. As we can say with 100% certainty, I think, that at least one person has put in a complaint we’ll (if they share or the conclusion is shared) or someone will eventually know how this pans out. Like yourself I do not work for the FOS and have not looked at the way loses are calculated but I do know that from talking to the FOS these are calculated on an individual bases and not an across the board for each issue as each individual's loses are different depending on circumstances. This came about when looking at putting in joint complaints for the same issues, the FOS said that complaints must be sent by each individual/legal entity due to replies which could contain information about compensation which would break the GDPR rules. On the subject of FOS complaints they also stated it would be a good idea to send a complaint for each issue so I do know a lot more complaints have been submitted because of both these reasons.
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iRobot
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Post by iRobot on Mar 9, 2021 15:35:52 GMT
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ilmoro
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'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 Mar 9, 2021 16:02:14 GMT
Hadnt thought about it before but this seems slightly misleading. What if my withdrawal request is £100, the payout is 10% of AA holdings which represents £1000, are they going to give me £900 I havent asked for? If not then the amount will be based on the size of my withdrawal request.
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Post by Ace on Mar 9, 2021 16:17:18 GMT
Hadnt thought about it before but this seems slightly misleading. What if my withdrawal request is £100, the payout is 10% of AA holdings which represents £1000, are they going to give me £900 I havent asked for? If not then the amount will be based on the size of my withdrawal request. I'm guessing that your tongue is firmly in your cheek here. Obviously, you won't get more than you asked for. The amount will be based on your AA holdings, but limited to your withdrawal request.
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ilmoro
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Post by ilmoro on Mar 9, 2021 16:57:45 GMT
Hadnt thought about it before but this seems slightly misleading. What if my withdrawal request is £100, the payout is 10% of AA holdings which represents £1000, are they going to give me £900 I havent asked for? If not then the amount will be based on the size of my withdrawal request. I'm guessing that your tongue is firmly in your cheek here. Obviously, you won't get more than you asked for. The amount will be based on your AA holdings, but limited to your withdrawal request. Of course, but that not what it says. Why does nobody ever read these things before they send them? The last one on the AA SM included an incorrect comparison statement and reference to functionality that I dont think exists.
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Post by Companion Cube on Mar 9, 2021 17:12:57 GMT
I'm guessing that your tongue is firmly in your cheek here. Obviously, you won't get more than you asked for. The amount will be based on your AA holdings, but limited to your withdrawal request. Of course, but that not what it says. Why does nobody ever read these things before they send them? The last one on the AA SM included an incorrect comparison statement and reference to functionality that I dont think exists. There is no problem here. If someone gets more back than they wanted they can just buy back in, no harm done. Some of them they may claim that their human rights have been violated and they have lost a days interest on the overpayment. Others may feel really happy that they were able to pass on their unused allowance to the person at the front of the 0% queue and help return to normal in some small way.
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Post by Ton ⓉⓞⓃ on Mar 9, 2021 20:31:09 GMT
NOW TRY TO BE GOOD P2PERS AND CONTAIN ANY WISHFUL THINKING OR OVER EXUBERANCE. DON’T DETACH ANY ANCHORS TO REALITY. View Attachment
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cnb
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Post by cnb on Mar 10, 2021 10:48:04 GMT
1% bonus cashback paid - Good to see they have enough cash to pay in full, no instalments this time.  Edit: Just calculated the lender fee for the past year, works out roughly twice the size of my bonus, perhaps they used my lender fee to pay me a bonus.  |
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Post by oppsididitagain on Mar 10, 2021 12:22:01 GMT
Hopefully they can pay some of the 'wind loans' provision fund cash that was promised but put on hold..
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cnb
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Post by cnb on Mar 10, 2021 13:51:57 GMT
Given that over 50% of withdrawal requests have now been repaid, how many are still left in the queue? Are we looking at a return to normal market operations soon?
Perhaps the new ISA season money, combined with the re-opening of non-retail in April will allow normal market operations to resume.
Currently the QAA discount rate to exit is 0.1% (£20) for £20,000 - There doesn't appear to be any sellers desperate to leave left.
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ilmoro
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Post by ilmoro on Mar 10, 2021 14:40:52 GMT
Given that over 50% of withdrawal requests have now been repaid, how many are still left in the queue? Are we looking at a return to normal market operations soon? Perhaps the new ISA season money, combined with the re-opening of non-retail in April will allow normal market operations to resume. Currently the QAA discount rate to exit is 0.1% (£20) for £20,000 - There doesn't appear to be any sellers desperate to leave left. I suspect most of the withdrawal queue is opportunist or tactical now with people merely have requests in to offer some liquidity & flexibility, probably a fair bit being recycled in & out. A key question will be how AC encourages people to cancel these requests to get a true picture of the actual demand for withdrawals.
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jlend
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Post by jlend on Mar 10, 2021 15:49:29 GMT
In the early hours of this morning a circa £15.5m distribution was made that implies the queued request prior to the distribution were circa £31m and about £16m straight after it. There will undoubtedly be some requests moving along the 30 day pipeline and ditto the 90 day pipeline. Also at the drop of a pin some or all of the about £45m in the QAA not requesting withdrawal as of the early hours of this morning could instantly join the queue. It’s tempting to think that a bumper ISA season might hail a tsunami of new money liquidity. It’d only take 1,000 full IFISAs to take out the current queue and then some, but I’d suspect that whilst AC might have a significant number of 2021_22 ISAs a lot will be money recycled from the regular account. Another wave of external only cash, in ISA and non-ISA form, could come from the Ratesetter loanbook buyout. I’m not in Ratesetter and haven’t really followed the detail. I think 2nd April is a key date, but I don’t know how big the remaining loanbook is and no one obviously knows what fraction might come AC’s way. As for the access accounts returning to the pre-covid ABNORMAL, that ain’t happening: the genie is out! Though there could be periods of much improved liquidity the mirage of instant access will not be seen in practice often and few, one would imagine, will ever view it again as a permanent reality. AC need a serious strategy to address what they want to do with the AAs and they need to formulate with exceptional skill and execute deftly. No breath being held here. Looking for 100m of ISA money immediately to invest in existing portfolio. bridgingandcommercial.co.uk/article-desc-16792_assetz-capital-ready-to-welcome-%C2%A3100m-of-ifisa-investment
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jlend
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Post by jlend on Mar 11, 2021 10:03:32 GMT
I’m looking for a €50m EuroLotto win immediately to invest in a lavish lifestyle. I don’t have a link to point you to in the press as I didn’t do a press release and had I probably nobody would have written it up. It is certainly a big amount when the current total AC ISA investment adds up to £87.09m according to the AC website.
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alanh
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Post by alanh on Mar 11, 2021 10:28:42 GMT
In the early hours of this morning a circa £15.5m distribution was made that implies the queued request prior to the distribution were circa £31m and about £16m straight after it. There will undoubtedly be some requests moving along the 30 day pipeline and ditto the 90 day pipeline. Also at the drop of a pin some or all of the about £45m in the QAA not requesting withdrawal as of the early hours of this morning could instantly join the queue. It’s tempting to think that a bumper ISA season might hail a tsunami of new money liquidity. It’d only take 1,000 full IFISAs to take out the current queue and then some, but I’d suspect that whilst AC might have a significant number of 2021_22 ISAs a lot will be money recycled from the regular account. Another wave of external only cash, in ISA and non-ISA form, could come from the Ratesetter loanbook buyout. I’m not in Ratesetter and haven’t really followed the detail. I think 2nd April is a key date, but I don’t know how big the remaining loanbook is and no one obviously knows what fraction might come AC’s way. As for the access accounts returning to the pre-covid ABNORMAL, that ain’t happening: the genie is out! Though there could be periods of much improved liquidity the mirage of instant access will not be seen in practice often and few, one would imagine, will ever view it again as a permanent reality. AC need a serious strategy to address what they want to do with the AAs and they need to formulate with exceptional skill and execute deftly. No breath being held here. Looking for 100m of ISA money immediately to invest in existing portfolio. bridgingandcommercial.co.uk/article-desc-16792_assetz-capital-ready-to-welcome-%C2%A3100m-of-ifisa-investmentIf he's "looking for £100m to invest in the existing portfolio" then does he not simply mean that there is £100m in the exit queue that he needs to replace with new investors? Seems a bit optimistic. Reminds me of that scene in Austin Powers where the guy says "why not just ask for a kajillion bajillion dollars"
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(I have no reason to believe 
