ilmoro
Member of DD Central
'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 Oct 12, 2015 21:01:52 GMT
Yes, some good examples there, though I assume that just enforcing a delay in withdrawing until the card funds have cleared would handle that specific example. You can be sure that without controls in that particular area, card fraud would be a significant problem. You'd then have to enforce the delay of where the funds end up. So in my example it's delay of the seller's withdrawal that needs to be delayed, and the tracking of when individual blocks of funds clear is a difficult problem. Otherwise if that seller withdraws the proceeds of their sale but the card gets declined then the seller has withdrawn physical cash that should technically belong to another lender who happened to have idle funds, as the funds they were supposed to be withdrawing never materialised. Very interesting This might explain why some platforms withdrawl procedures are slower than others with checks having to made that relevant funds are 'cleared' (which could in theory involve multiple transactions)
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Post by chris on Oct 15, 2015 7:20:34 GMT
You'd then have to enforce the delay of where the funds end up. So in my example it's delay of the seller's withdrawal that needs to be delayed, and the tracking of when individual blocks of funds clear is a difficult problem. Otherwise if that seller withdraws the proceeds of their sale but the card gets declined then the seller has withdrawn physical cash that should technically belong to another lender who happened to have idle funds, as the funds they were supposed to be withdrawing never materialised. Very interesting This might explain why some platforms withdrawl procedures are slower than others with checks having to made that relevant funds are 'cleared' (which could in theory involve multiple transactions) You'd like to think so but I wouldn't be surprised if others just had a different interpretation of the client money rules. We'll all have independent guidance and, as is usual for a regulator, the rules say "do this" or "don't do this" but don't say "well this here is a loophole that lets you do this". We've taken the client money rules incredibly seriously and literally and haven't sought any loopholes or workarounds, we have a by the book implementation even though there's a competitive disadvantage and large monthly banking cost associated with our route. There are no doubt solutions to things like accepting debit cards but based on our current advice those solutions are more complicated and expensive than even our current implementation, so we'll come back to them in time as business needs dictate.
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Post by mrclondon on Oct 15, 2015 14:32:21 GMT
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JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,323
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Post by JamesFrance on Oct 15, 2015 15:12:28 GMT
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Post by easteregg on Oct 15, 2015 15:41:17 GMT
I cannot find any reference to TrustBuddy on the interim FCA register. Does anyone have any information on this?
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Post by mrclondon on Oct 15, 2015 15:46:58 GMT
I cannot find any reference to TrustBuddy on the interim FCA register. Does anyone have any information on this? Putting 2 and 2 together .... the link in the post above yours by JamesFrance implies TrustBuddy aquired a UK (shell) company which had interim FCA authorisation. Google doesn't seem to know the identity of this company which I guess is being held as a wholly owned subsid by TrustBuddy, and hence the FCA authorisation is still in the name of the aquired company.
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Post by wiseclerk on Oct 19, 2015 9:04:56 GMT
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Post by chris on Oct 19, 2015 9:14:19 GMT
That's quite a shock! It's going to be an interesting few months. Ultimately it shouldn't affect the UK market but I suspect there'll be additional scrutiny of what is happening in this market, especially around more cavalier implementations of the client money rules.
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ribs
Probably not James Marshall
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Post by ribs on Oct 19, 2015 16:35:50 GMT
Am I the only one who sniggered at the name given the situation? Admittedly, I wouldn't be sniggering if it were my money locked up. I was rather miffed when IceSave went belly up, and I was confident I was getting my money back eventually. Here, not so much. Anyway, according to the my apple pie thread, nobody on this forum admitted to having anything invested in these guys at all. So that's good from our tiny corner of the Internet. I'm wondering if this is the firm everyone was talking about, or indeed another one that's unrelated.
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bigfoot12
Member of DD Central
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Post by bigfoot12 on Oct 19, 2015 16:43:39 GMT
I'm wondering if this is the firm everyone was talking about, or indeed another one that's unrelated. Is there actually a firm that everyone is talking about? I have spoken to a well placed contact and whilst there has been talk no one they know has named anyone specific.
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ribs
Probably not James Marshall
Posts: 148
Likes: 151
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Post by ribs on Oct 19, 2015 16:58:03 GMT
I'm wondering if this is the firm everyone was talking about, or indeed another one that's unrelated. Is there actually a firm that everyone is talking about? I have spoken to a well placed contact and whilst there has been talk no one they know has named anyone specific. Well, we've all been discussing a mystery firm that the Evening Standard was talking about. So I'm wondering if it was TrustBuddy that the ES was talking about, or if TrustBuddy was just an incidental piece of news.
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bigfoot12
Member of DD Central
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Post by bigfoot12 on Oct 19, 2015 17:11:30 GMT
Sure, but the evening standard had "the industry is buzzing with rumours" and it seemed to be referring to a specific company. No one I've spoken to had heard any discussion of a specific company prior to the public announcements regarding Trustbuddy.
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ribs
Probably not James Marshall
Posts: 148
Likes: 151
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Post by ribs on Oct 19, 2015 17:21:31 GMT
Sure, but the evening standard had "the industry is buzzing with rumours" and it seemed to be referring to a specific company. No one I've spoken to had heard any discussion of a specific company prior to the public announcements regarding Trustbuddy. Indeed, I wasn't terribly clear. So, was TrustBuddy the company the rumoured company the ES article alluded to, or are we still bracing ourselves for more bad news? If the FCA was investigating them, we could make a reasonable assumption that it's a UK based company, which TrustBuddy isn't. Maybe there is more news of this nature to come.
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JamesFrance
Member of DD Central
Port Grimaud 1974
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Post by JamesFrance on Oct 20, 2015 8:32:58 GMT
No there are other European companies which have opted for regulation by the FCA. TrustBuddy was reported to have acquired a UK subsidiary already regulated by them.
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ribs
Probably not James Marshall
Posts: 148
Likes: 151
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Post by ribs on Oct 21, 2015 12:09:29 GMT
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