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Post by andrewholgate on Nov 10, 2016 6:53:07 GMT
chris and I will not be commenting further on this. We've answered enough. It is as sustained attack by one person who seems to disagree with QAA. We all have differences in life. I'm stepping away from this and I hope she does to.
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littleoldlady
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Post by littleoldlady on Nov 11, 2016 21:57:18 GMT
chris Can you explain the procedure that will be followed when a loan in which the QAA is invested goes 1) overdue, 2) into default, 3) crystallises as a loss. If it is dependent on the size, show it for small, medium and large cases. Bear in mind that there will be continuous inflows and outflows during the progression of the failing loan to its final state. Is it possible that some investors may have more inside knowledge of a failing loan in an intermediate position, for example by holding the same loan in another account (I know that at present they will not know if the loan they hold is in the QAA but you said you were considering changing this, or they may just make a correct guess about it). At what point will investors in the QAA be informed of a failing loan? At what point, if any, would withdrawals from the QAA be halted? And answer was there none. Nor to MONEY's reasonable question.
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mikes1531
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Post by mikes1531 on Nov 11, 2016 23:25:50 GMT
And answer was there none. Nor to MONEY 's reasonable question. Didn't chris say recently, in another thread possibly, that he had been in meetings all day for two days and was similarly tied up today?
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mikes1531
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Post by mikes1531 on Nov 11, 2016 23:32:10 GMT
Nor to MONEY 's reasonable question. : When/where was MONEY's question? I've looked back through the eight pages of this thread and don't see anything from him.
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littleoldlady
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Post by littleoldlady on Nov 12, 2016 9:06:42 GMT
Nor to MONEY 's reasonable question. : When/where was MONEY 's question? I've looked back through the eight pages of this thread and don't see anything from him. Nor can I now. Must have been an aberration.
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Post by chris on Nov 12, 2016 10:20:18 GMT
chris Can you explain the procedure that will be followed when a loan in which the QAA is invested goes 1) overdue, 2) into default, 3) crystallises as a loss. If it is dependent on the size, show it for small, medium and large cases. Bear in mind that there will be continuous inflows and outflows during the progression of the failing loan to its final state. Is it possible that some investors may have more inside knowledge of a failing loan in an intermediate position, for example by holding the same loan in another account (I know that at present they will not know if the loan they hold is in the QAA but you said you were considering changing this, or they may just make a correct guess about it). At what point will investors in the QAA be informed of a failing loan? At what point, if any, would withdrawals from the QAA be halted? And answer was there none. Nor to MONEY 's reasonable question. As others have mentioned I was in back to back meetings for the last three days. If there are questions you want answering we have an entire customer services department ready to talk to you - best to give them a call instead of relying upon unofficial support via this forum. There are no special procedures that I'm aware of that kick in when there are credit events on a loan the QAA is invested in. At all times the QAA operates as if there were no knowledge beyond that in the public domain, as announced on the site to all other investors. So when a loan goes overdue there is no change although I'd expect buy orders may be cancelled if relevant; when it defaults the market is suspended anyway; if there is a crystalised loss then the provision fund may (or may not as it is discretionary) cover the shortfall. andrewholgate would be better placed to be more specific than that. With regard to withdrawals from the QAA being halted, currently that would only explicitly occur when the cash reserves were exhausted, no new funds were flowing into the account, and the account is unable to sell any of its loan holdings. It's technically possible that there are scenarios whereby withdrawals would be expressly locked, to prevent a run on the account in the face of multiple major defaults for example, but nothing has been formally agreed at board level to put in place procedure for this so I would expect an ad hoc board meeting would be needed. Again Andy is better placed to give specifics if you need as this is outside my area of expertise and authority.
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Post by valueinvestor123 on Nov 12, 2016 11:10:53 GMT
"As an aside: valueinvestor123 - could I respectfully request that you change the title of the thread. The Quick Access Account is not and never has been an Instant Cash Account so the thread title itself has the potential to mislead any prospective investor."
I think the current title is actually quite useful to have in immediately understanding what it is not. I initially (and mistakenly) used the title (by mis-remembering the actual title) after a 2-second glance on the description of the QAA.
The prospective investor would not be able to be mislead by my title because 'Instant Cash Account' doesn't actually exist.
Plus the second post or so immediately addresses this.
However if the mods feel it needs to be changed, I am all for it.
Edit: this is the only bit that I read at the time (and immediately misunderstood): "The QAA is designed to provide immediate access to your cash, in normal market conditions, should you wish to sell your investment and return your cash for another purpose."
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SteveT
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Post by SteveT on Nov 12, 2016 11:16:53 GMT
[Mod hat on]
I'd agree that the thread title is more likely to mislead than inform so would appreciate your changing it.
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Post by valueinvestor123 on Nov 12, 2016 11:22:55 GMT
Where is the change thread title function?
Edit: found it. Better?
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littleoldlady
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Post by littleoldlady on Nov 12, 2016 11:32:16 GMT
And answer was there none. Nor to MONEY 's reasonable question. As others have mentioned I was in back to back meetings for the last three days. If there are questions you want answering we have an entire customer services department ready to talk to you - best to give them a call instead of relying upon unofficial support via this forum. There are no special procedures that I'm aware of that kick in when there are credit events on a loan the QAA is invested in. At all times the QAA operates as if there were no knowledge beyond that in the public domain, as announced on the site to all other investors. So when a loan goes overdue there is no change although I'd expect buy orders may be cancelled if relevant; when it defaults the market is suspended anyway; if there is a crystalised loss then the provision fund may (or may not as it is discretionary) cover the shortfall. andrewholgate would be better placed to be more specific than that. With regard to withdrawals from the QAA being halted, currently that would only explicitly occur when the cash reserves were exhausted, no new funds were flowing into the account, and the account is unable to sell any of its loan holdings. It's technically possible that there are scenarios whereby withdrawals would be expressly locked, to prevent a run on the account in the face of multiple major defaults for example, but nothing has been formally agreed at board level to put in place procedure for this so I would expect an ad hoc board meeting would be needed. Again Andy is better placed to give specifics if you need as this is outside my area of expertise and authority. Thanks for that. Sorry if I seemed impatient for a reply but the earlier exchanges between AC and valueinvestor123 seemed to be quickfire. The nub of the issue is this. If there is ever a loss to investors, despite all your best efforts and use of the PF, then which investors will take the hit? ISTM that there will be many investors who had money in the fund during the period when the loan(s) were progressing from overdue to a crystalised loss who have withdrawn it before the crunch. Will it be the last ones left in it who take the whole hit or will it be shared somehow? andrewholgate
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Post by valueinvestor123 on Nov 12, 2016 11:46:40 GMT
"At all times the QAA operates as if there were no knowledge beyond that in the public domain, as announced on the site to all other investors."
Presumably you meant to say that QAA operates without knowledge beyond that in the public domain, as announced on the site to all other investors?
Apologies if I am being pedantic but it's a somewhat important distinction.
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Post by chris on Nov 12, 2016 11:53:19 GMT
"At all times the QAA operates as if there were no knowledge beyond that in the public domain, as announced on the site to all other investors." Presumably you meant to say that QAA operates without knowledge beyond that in the public domain, as announced on the site to all other investors? Apologies if I am being pedantic but it's a somewhat important distinction. Oh come on now, I'm not a lawyer and I shouldn't have to be worrying over semantics like that. If you feel I should be worrying then you'll have to count me out from future discussion as it's not worth my time having to clear every response with our legal counsel and compliance officer.
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Post by chris on Nov 12, 2016 11:54:19 GMT
The nub of the issue is this. If there is ever a loss to investors, despite all your best efforts and use of the PF, then which investors will take the hit? ISTM that there will be many investors who had money in the fund during the period when the loan(s) were progressing from overdue to a crystalised loss who have withdrawn it before the crunch. Will it be the last ones left in it who take the whole hit or will it be shared somehow? andrewholgate _ Rather than guess I've asked for clarification from the other directors who would know the policy. May have to be Monday before I get a response I can pass on.
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littleoldlady
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Post by littleoldlady on Nov 16, 2016 13:00:37 GMT
The nub of the issue is this. If there is ever a loss to investors, despite all your best efforts and use of the PF, then which investors will take the hit? ISTM that there will be many investors who had money in the fund during the period when the loan(s) were progressing from overdue to a crystalised loss who have withdrawn it before the crunch. Will it be the last ones left in it who take the whole hit or will it be shared somehow? andrewholgate _ Rather than guess I've asked for clarification from the other directors who would know the policy. May have to be Monday before I get a response I can pass on.Well Monday came and went, Tuesday came and went.
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Post by chris on Nov 16, 2016 13:03:35 GMT
Rather than guess I've asked for clarification from the other directors who would know the policy. May have to be Monday before I get a response I can pass on.Well Monday came and went, Tuesday came and went. Sorry, the clarification came back to me but I was distracted and forgot to post it back here. If it ever happens then at the point a loss is crystallised that the provision fund will not cover that capital reduction will be applied proportionally across all lenders within the QAA / 30DAA.
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