Bagman
Member of DD Central
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Post by Bagman on Sept 30, 2015 19:42:52 GMT
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,329
Likes: 11,549
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Post by ilmoro on Sept 30, 2015 20:26:56 GMT
Jealous! Youre 3 times better off than me with a measley 0.0012065543007301 invested 
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Post by Ton ⓉⓞⓃ on Sept 30, 2015 20:33:03 GMT
Ok, which is it an investment account for 40 people with 25k spare or holding account for all your customers? Also there are over 300 people with funds currently in the QAA. I don't mean this as a criticism but AC has something like 9,000 or 10,000 Lenders/Investors. Obviously not all of these would want or need this service for different reasons but still there's a large diff. between these two figures (300 & 9,000). This account is too successful.
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mikes1531
Member of DD Central
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Post by mikes1531 on Sept 30, 2015 22:18:27 GMT
Jealous! Youre 3 times better off than me with a measley 0.0012065543007301 invested Compared to the above, I suppose I should consider myself rather fortunate -- I have £0.015009664594168 in the QAA!
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mikes1531
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Post by mikes1531 on Sept 30, 2015 22:25:56 GMT
The QAA is envisaged to grow much bigger than the £1m limit but we need a combination of loans drawing down, interest being earned by the invested cash (this is the biggest blocker on just upping the limit now)... Considering the level of activity I'm seeing in the Aftermarket via my MLIA, I'm somewhat surprised that the QAA hasn't been able to pick up enough parts to produce the needed level of interest and support an increase in the £1M limit. Does anyone know -- chris? -- how many of the 95 live loans meet the eligibility criteria for inclusion in the QAA? Have AC indicated what those criteria are, as they have for the GEIA and GBBA?
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Post by chris on Oct 1, 2015 6:35:22 GMT
The QAA is envisaged to grow much bigger than the £1m limit but we need a combination of loans drawing down, interest being earned by the invested cash (this is the biggest blocker on just upping the limit now)... Considering the level of activity I'm seeing in the Aftermarket via my MLIA, I'm somewhat surprised that the QAA hasn't been able to pick up enough parts to produce the needed level of interest and support an increase in the £1M limit. Does anyone know -- chris? -- how many of the 95 live loans meet the eligibility criteria for inclusion in the QAA? Have AC indicated what those criteria are, as they have for the GEIA and GBBA? It's not just that the loans are available, they have to have their next payment date before the end of the month but not so early that we don't accrue enough interest. It's easy to balance once the QAA has been running for a month and is static in size but really quite difficult when scaling up the fund.
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mikeb
Posts: 1,072
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Post by mikeb on Oct 1, 2015 17:53:17 GMT
What is the plan for crediting interest on the QAA? I thought I read that it would be applied back to the QAA on the 1st of the month? Of course, the interest may not currently fit in due to the queue 
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mikes1531
Member of DD Central
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Post by mikes1531 on Oct 1, 2015 18:19:51 GMT
What is the plan for crediting interest on the QAA? I thought I read that it would be applied back to the QAA on the 1st of the month? Of course, the interest may not currently fit in due to the queue Surely it has to be placed at the end of the queue, doesn't it? If it's allowed to augment the existing holdings near the front of the queue, then some money that's just in front of the £1M limit will be pushed back behind that point and stop earning, and that would antagonise the investors involved. OTOH, if the interest is put at the back of the queue then those investors who are earning interest won't be happy to learn that they've lost the benefit of compounding. (Not that they were promised compound interest, as I don't see an AER quoted anywhere, just 3.75% p.a.)
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mikes1531
Member of DD Central
Posts: 6,453
Likes: 2,320
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Post by mikes1531 on Oct 1, 2015 18:28:17 GMT
Considering the level of activity I'm seeing in the Aftermarket via my MLIA, I'm somewhat surprised that the QAA hasn't been able to pick up enough parts to produce the needed level of interest and support an increase in the £1M limit. Does anyone know -- chris? -- how many of the 95 live loans meet the eligibility criteria for inclusion in the QAA? Have AC indicated what those criteria are, as they have for the GEIA and GBBA? It's not just that the loans are available, they have to have their next payment date before the end of the month but not so early that we don't accrue enough interest. It's easy to balance once the QAA has been running for a month and is static in size but really quite difficult when scaling up the fund. : I'm surprised to see this startup/growth issue being allowed to hold back the expansion of the QAA. The description of the QAA includes a comment that the Provision Fund "may be used to ensure that the 3.75% p.a. target gross return is paid on time each month", and using the PF in the initial transitory stage would make the problem go away. 3.75% p.a. is only 0.31%/month and, since the issue relates only to part of the initial month, that's small in comparison to the intended 5% PF level of coverage.
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Post by chris on Oct 1, 2015 18:38:20 GMT
It's not just that the loans are available, they have to have their next payment date before the end of the month but not so early that we don't accrue enough interest. It's easy to balance once the QAA has been running for a month and is static in size but really quite difficult when scaling up the fund. : I'm surprised to see this startup/growth issue being allowed to hold back the expansion of the QAA. The description of the QAA includes a comment that the Provision Fund "may be used to ensure that the 3.75% p.a. target gross return is paid on time each month", and using the PF in the initial transitory stage would make the problem go away. 3.75% p.a. is only 0.31%/month and, since the issue relates only to part of the initial month, that's small in comparison to the intended 5% PF level of coverage. Unfortunately we're not allowed to top up interest in that way as our compliance guy believes it to be against our FCA permissions. We're trying to work out alternatives but for the foreseeable future and until we find something we can only use the provision fund to cover a shortfall in interest due to losses and not to artificially pay more than should be owed.
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Post by chris on Oct 1, 2015 18:43:38 GMT
What is the plan for crediting interest on the QAA? I thought I read that it would be applied back to the QAA on the 1st of the month? Of course, the interest may not currently fit in due to the queue Surely it has to be placed at the end of the queue, doesn't it? If it's allowed to augment the existing holdings near the front of the queue, then some money that's just in front of the £1M limit will be pushed back behind that point and stop earning, and that would antagonise the investors involved. OTOH, if the interest is put at the back of the queue then those investors who are earning interest won't be happy to learn that they've lost the benefit of compounding. (Not that they were promised compound interest, as I don't see an AER quoted anywhere, just 3.75% p.a.) I believe the one month date from launch of the account is the 9th, although considering ways of synchronising that with the first of the month without breaking any compliance rules. A believe a mailer will be going out soon. When paid it will go into the account the investment came from, so direct investments would go into the QAA account to be queued, and swept investments from other accounts would go into those accounts and would then be queued if you still have the account set to do so.
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mikeb
Posts: 1,072
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Post by mikeb on Oct 2, 2015 8:13:19 GMT
What is the plan for crediting interest on the QAA? I thought I read that it would be applied back to the QAA on the 1st of the month? Of course, the interest may not currently fit in due to the queue Surely it has to be placed at the end of the queue, doesn't it? If it's allowed to augment the existing holdings near the front of the queue, then some money that's just in front of the £1M limit will be pushed back behind that point and stop earning, and that would antagonise the investors involved. OTOH, if the interest is put at the back of the queue then those investors who are earning interest won't be happy to learn that they've lost the benefit of compounding. (Not that they were promised compound interest, as I don't see an AER quoted anywhere, just 3.75% p.a.) Probably end of queue is the fairest. But let me put this another way -- is there a plan to ever credit the interest? It isn't showing up anywhere, let alone at the back of the queue! Ah: I see Chris has now mentioned the 9th of the month as a new payment date. Will see what happens then.
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star dust
Member of DD Central
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Post by star dust on Oct 2, 2015 16:36:23 GMT
I'm beginning to wonder if AC have shot themselves in the foot a bit with this product. There are some presumably happy punters getting 3.75% on some or all of their spare cash. However, it remains to be seen whether they will get their delayed interest into it, and I wonder if people will cotton on that once money leaves QAA for shrapnel or that loan drawdown mirage it's unlikely to get back in again in the near future. So, plan B for some might be to add new money rather than use QAA funds for new loan/s further clogging it up; or like me and a number of others' it seems, just withdraw any spare money as it's more like insult to injury if you can't even get a few £s in it.
Unless the cap is increased significantly, and/or the individual caps reduced, I'm not convinced even an increased deal flow is going to help much. Instant access at your peril!
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rogerbu
Member of DD Central
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Post by rogerbu on Oct 2, 2015 17:20:25 GMT
Having been stung by the complexity of QAA, I have taken to withdrawing all spare money from AC and only funding when a loan offer is irresistible. As a result, money going into AC is less than it would have been.
I can't be doing with an account with 3-4 hidden sub accounts and rules that are unfathomable and keep changing.
AC. I suggest you dump QAA and start again.
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webwiz
Posts: 1,133
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Post by webwiz on Oct 2, 2015 17:47:34 GMT
Having been stung by the complexity of QAA, I have taken to withdrawing all spare money from AC and only funding when a loan offer is irresistible. As a result, money going into AC is less than it would have been. I can't be doing with an account with 3-4 hidden sub accounts and rules that are unfathomable and keep changing. AC. I suggest you dump QAA and start again. Me too. Except that I have given up altogether.
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