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Lendy: ring fenced is not ring fenced (liquidators fees)

Any other investment discussions eg. peer to peer lending
yorkshirelad1
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Lendy: ring fenced is not ring fenced (liquidators fees)

#268709

Postby yorkshirelad1 » December 3rd, 2019, 9:15 am

People who invested in businesses via a failed peer-to-peer platform have discovered their money was not ring-fenced as promised, raising new questions for the City regulator. Lendy investors, who are owed more than £150 million, expressed shock and anger after administrators told them to brace for a much bigger hit than expected because a significant proportion of money they believe they are owed has been earmarked to pay off insolvency practitioners and creditors. – The Times


https://www.sharecast.com/news/press-round-up-short-premium/tuesday-newspaper-round-up-tsb-trump-virgin-atlantic-lendy--7144112.html

Wonder if the FSCS will step in and pay the insolvency fees (as in the case of e.g. Beaufort)

Lessons to be learnt (at the risk of stating the obvious)
  1. ring fenced no longer means ring fenced (e.g in the case of broker nominees)
  2. in case of insolvency, you may loose some of your money to liquidators fees

dspp
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Re: Lendy: ring fenced is not ring fenced (liquidators fees)

#268773

Postby dspp » December 3rd, 2019, 12:17 pm

yorkshirelad1 wrote:
People who invested in businesses via a failed peer-to-peer platform have discovered their money was not ring-fenced as promised, raising new questions for the City regulator. Lendy investors, who are owed more than £150 million, expressed shock and anger after administrators told them to brace for a much bigger hit than expected because a significant proportion of money they believe they are owed has been earmarked to pay off insolvency practitioners and creditors. – The Times


https://www.sharecast.com/news/press-round-up-short-premium/tuesday-newspaper-round-up-tsb-trump-virgin-atlantic-lendy--7144112.html

Wonder if the FSCS will step in and pay the insolvency fees (as in the case of e.g. Beaufort)

Lessons to be learnt (at the risk of stating the obvious)
  1. ring fenced no longer means ring fenced (e.g in the case of broker nominees)
  2. in case of insolvency, you may loose some of your money to liquidators fees


Moderator Message:
moved here, this is not a brokerage topic, dspp

stevensfo
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Re: Lendy: ring fenced is not ring fenced (liquidators fees)

#268862

Postby stevensfo » December 3rd, 2019, 5:02 pm

have discovered their money was not ring-fenced as promised, raising new questions for the City regulator.


What friggin' new questions?? I joined TMF about 1999, and as far as I remember, the term 'ring-fenced' has been discussed ad nauseam and the expression never really proven or believed since then, so approx 20 years! It doesn't mean a bloody thing. Try finding a definition in your Broker's T&Cs.

If I steal everything in a house and keep it 'ring-fenced' in my offshore account, would that make anyone feel better?

Apart from that, I don't think any P2P providers have ever had the FSCS guarantee.

Steve

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Re: Lendy: ring fenced is not ring fenced (liquidators fees)

#281219

Postby JohnB » January 30th, 2020, 6:16 pm

The Lendy Action Group have just launched a funding campaign to mount a legal challenge against the unfair waterfall model that will syphon off 20% of recoveries. See https://www.crowdjustice.com/case/lendy ... egal-fund/ and http://p2pindependentforum.com/thread/1 ... fund-raise for background.


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