Dear all,
One week has now completed after our funds have disappeared into thin air.
How do I feel on a personal level almost the same as all of you disgusted that we
Have been left hanging in an emotion of hope. What else can we do at this point?
I have sent 2 emails now to kpmg on behalf of us all saying in an ten week process
Should you not at least give us a weekly update of what is going on?
There is no point making phone calls to them as they have a standard script which
they abide to hence I have voiced my opinions further up.
All those clients at Worldspreads that have lost below £50,000 please note your funds are safe.
All those clients at Worldspreads have lost below £100,000 will also probably be safe and this is my opinion after doing some maths.
Anyone above it we will have to just wait and see what comes of the distribution of the Funds left.
I don’t see any point in trying to start a legal battle until we get some kind of statement of findings from Kpmg as this is what they are paid to do so we should be patient and wait for the day.
We have heard that that the Worldspreads Platform has been sold to ETX for a figure of around £460,000 so let’s see what else Kpmg can salvage for us.
I totally understand the frustration of most of the clients and can only try and help you by responding to your questions. The horror stories just get worse as a result of “The heist”.
Daily incomes of full time traders on hold, faith on managed account traders has been lost, clients that have had their long term positions for over 6-7 months have made some massive losses, Partners have split up.. this list goes on...
My deepest sympathy to all those that have been affected.
Right now we have no option but to be patient and wait for KPMG to give us a statement.
KPMG is obliged to make a report of their findings in 10 weeks – the first week of June – which will detail the likeliest outcome for creditors.
The question regarding open positions, the positions have been closed and a loss will be a loss and a profit will be a profit as per close of trading on the 16th of march there is nothing at all that can be done due to the terms and conditions in the agreement between you "The Client " and "Worldspreads"
(I guess now it is time to review all the spread betting agreements and make sure we know where we stand)
A lot of clients who have had accounts in Europe have the same question, regarding their funds i.e. Are they protected and the answer is yes they are up to £50,000.00
Other than this I will keep you updated on any responses from FSA, FSCS and KPMG
Kind regards
Rav
Thank you for all your support in distributing this blog to the thousands of Worldspreads clients who have been affected by this Financial Catastrophe.
One week has now completed after our funds have disappeared into thin air.
How do I feel on a personal level almost the same as all of you disgusted that we
Have been left hanging in an emotion of hope. What else can we do at this point?
I have sent 2 emails now to kpmg on behalf of us all saying in an ten week process
Should you not at least give us a weekly update of what is going on?
There is no point making phone calls to them as they have a standard script which
they abide to hence I have voiced my opinions further up.
All those clients at Worldspreads that have lost below £50,000 please note your funds are safe.
All those clients at Worldspreads have lost below £100,000 will also probably be safe and this is my opinion after doing some maths.
Anyone above it we will have to just wait and see what comes of the distribution of the Funds left.
I don’t see any point in trying to start a legal battle until we get some kind of statement of findings from Kpmg as this is what they are paid to do so we should be patient and wait for the day.
We have heard that that the Worldspreads Platform has been sold to ETX for a figure of around £460,000 so let’s see what else Kpmg can salvage for us.
I totally understand the frustration of most of the clients and can only try and help you by responding to your questions. The horror stories just get worse as a result of “The heist”.
Daily incomes of full time traders on hold, faith on managed account traders has been lost, clients that have had their long term positions for over 6-7 months have made some massive losses, Partners have split up.. this list goes on...
My deepest sympathy to all those that have been affected.
Right now we have no option but to be patient and wait for KPMG to give us a statement.
KPMG is obliged to make a report of their findings in 10 weeks – the first week of June – which will detail the likeliest outcome for creditors.
The question regarding open positions, the positions have been closed and a loss will be a loss and a profit will be a profit as per close of trading on the 16th of march there is nothing at all that can be done due to the terms and conditions in the agreement between you "The Client " and "Worldspreads"
(I guess now it is time to review all the spread betting agreements and make sure we know where we stand)
A lot of clients who have had accounts in Europe have the same question, regarding their funds i.e. Are they protected and the answer is yes they are up to £50,000.00
Other than this I will keep you updated on any responses from FSA, FSCS and KPMG
Kind regards
Rav
Thank you for all your support in distributing this blog to the thousands of Worldspreads clients who have been affected by this Financial Catastrophe.
Is it any better in the USA. ie protection of client funds and accountability.
ReplyDeleteLooks like it is not any better there.
If Corzine does not go down for this, it is open season on client funds, with ignorance being a complete defence.
http://www.marketwatch.com/story/corzine-approved-mf-global-fund-transfer-probe-2012-03-23
Thanks Rav for all your hard work.
ReplyDeleteI think that as the news dies down over Worldspreads we need to continue to put pressure on KPMG to use every avenue to recover the funds.In particular, the Directors and the Auditors.We need to put presure on KPMG to legally pursue them because it is just too easy for KPMG not to and just distribute the assets that are left.Not only would legal action against the Directors and Auditors likely recover the money owed to those with over £50,000 in Worldspreads but just as important it is the only way that this industry will be made safe in future for clients.Both Directors and Auditors of all Spreadbetting companies need to believe that if FSA rules are broken and client money is misused and lost, that they will end up being sued for the losses.
We must keep the pressure up on KPMG.
And thanks again Rav
An excellent blog Rav and a good means of financially struck clients sticking together to lobby to ensure full return of funds.
DeleteIt also means clients do not have to constantly check with KPMG for information which is only going to cost us all and deplete our return.
I agree with the poster above that if FSA regulations are flagrantly breached with no appropriate response it's open invitation for the rest of the industry to abuse client funds. This is not a one-off now after MF Global. The industry is best served if our lost funds are made whole again.
My main objective or aspiration is to see everyone made whole again. A good means of achieving this is to point out that if we are not fully reimbursed the lack of credibility for the industry will be far more costly.
Whatever has happened, we do know FSA regulations have been breached. That should be suffice for a full return or otherwise FSA regulations are not worth the paper they are written on. The industry is going to be a complete mess if nobody can safely put in more than 50k because of the fears that supposedly 100% segregated funds might by syphoned off.
We have to await the adminstrator findings but if there has been any negligence by E & Y then KPMG must take action on our behalf. I suspect this will be the easiest route to recovering funds in full.
It should also be enshrined in the insolvency regulations that the onus should be on the administrator to take legal action as opposed to assigning to clients who, in may cases, are often impoverished after events like this.
I also believe there should be an obligation on the administrator to share their findings in full to all clients unless it is going to prejudice legal action the administrator intends to take.
One note of concern is that I read an early press report that the City of London police were notified by the FSA but haven't gone in yet. Again, if that remains the case, another of our institutions is failing us.
Let's keep the spotlight on KPMG and we await the first indication from them of available funds for distribution and likely timing.
A week on and my emotion has turned from shock and concern to anger.
ReplyDeleteAnger at the guilty people who actually illegally accessed the client cash.Anger at all the Directors for not stopping it.Anger at the Auditors for not doing their job and checking that the figures were correct.Anger at the FSA for not ensuring that their own rules were followed.
Does KPMG have a legal responsibility to launch legal action against Ernst and Young and the Directors?.Surely they have a legal responsibility to recover the funds for clients.
ReplyDeleteHow do we know if they decide to do so or not?.
If they dont,can individual creditors sue these groups?
Just to clarify the last point ...
ReplyDeleteKPMG are the administrators and the job given to them is too present their findings at this point and give us answers as to where the money has gone missing and also recover and redistribute the funds..
Kind regards
Rav
Rav,
ReplyDeleteOn a separate note, I have read that KPMG posted a list of all MF Global clients with the amount owed and their addresses.The list was apparently removed from public display a few weeks ago after concerns that it would allow all sorts of scams to target them and in the case of larger clients pose a direct personal threat to their safety.
Can we get a commitment from KPMG that they will not publish a similar list of Worldspreads clients.
Fair play for your efforts. Hope you managed to salvage what you can. As a shareholder who faces the prospect of getting nothing back, I struggle to understand how this was allowed to happen - Questions need to be answered by a lot of people
ReplyDeleteI am client not a shareholder but if we were in the US I have no doubt that shareholders would be filing a class action against the Directors and the Auditors.It is not for KPMG to sue on shareholders behalf, they would have to organise that for themselves as KPMG are only acting for creditors.But the Directors and KPMG owe the owners of the business a "duty of care" just as they did creditors.
DeleteGood luck.
i don't have a copy of the rules regarding closing positions, but i had short positions which were underwater and for which i was paying a daily charge. good luck to those who were long at the time, but surely the positions should be closed with no loss or profit to anyone if WS are unable to run the positions. If WS can't run then why should i lose my money. The cash balance at the time should be what we are entitled to rather than WS taking our money on losing positions and giving whats left, so the question is, is it theirs to take?.
ReplyDeleteThoughts anyone?
Well there wouldn`t be much point in running the positions when the company was bankrupt because they wouldn`t be able to pay you if you won without taking more money from other people.Also, any hedge they had against open positions would have been closed down by the counterparty because they also knew they wouldnt be paid.It just wasnt possible to continue to run positions when to company was bust.So if all positions had to be closed what fairer way was there than at that point to recognise all gains and losses at that point,particularly given that the hedges would be closed crystalising gains or losses at that time.
Delete