DAG STRATEGY TEAM UPDATE

Posted 10/03/2009 - 07:29 by Anonymous

KSFIOM UPDATE

March 9 2009

This document updates DAG members on initiatives currently being pursued by DAG Strategy Team and requests members to respond to our calls below for action regarding registration and fund raising.
A number of actions are being taken or planned to secure 100% recovery of deposits. In addition, we are preparing for our response to forthcoming Isle of Man Government (IOMG) proposals for a Scheme of Arrangement (SoA). We will not be commenting on rumours, reported verbal assurances from IOMG or blogs that get posted on the DAG website. Until a final written proposal is made, speculation is a counter productive use of our time. We appreciate all the efforts from Ally and others on the IOM but from past experience, regrettably, we are sceptical about promises until we see them in writing.

100p/£ recovery

100% recovery requires political action by HMG and IOMG. To achieve this we are making direct approaches to both Governments and we will also engage the services of lobbying and PR specialists.
Although our approaches have failed in the past we believe that our case is stronger today than it was several weeks ago. The Prime Minister is on record as favouring deposit security on an international scale: we need a regulatory transformation so that people can feel that their savings and their deposits are safe. ......... That is why we are saying in this document that changes that we make will have to apply to all jurisdictions round the world. Moreover, it is becoming increasingly clear that 100% depositor protection is best practice in the new global financial environment.

We have written again to Alan Bell (LINK) and will submit further letters tomorrow to the Treasury Select Committee, Prime Minister, Jack Straw and to IOMG ministers urging united action from HMG and IOMG to find a solution to fund 100p/£ recovery.

Best possible (SoA)

We are appointing Counsel to review ALL aspects of an SoA and to provide correct interpretation of the DCS. Specific areas requiring Counsel opinion include:

• the implications for depositor legal rights if the scheme is presented by a third party

• Implications for depositor legal rights if the scheme is presented by the company against which future legal action might be necessary given that we would no longer be creditors

• Implementation steps for a liquidation followed by an SoA so that the contributories to the SoA are legally bound

• possible grounds for initiating action under any other regulations that may be in place and at present are not being acted upon.

• regulatory failures of all parties involved, method for pursuing legal action against any 3rd parties liable, outcome of possible pursuit of those 3rd parties

We plan a further legal update later this week, particularly in relation to the Early Payment Scheme and its impact on SoA votes. Meanwhile HERE is the latest Edwin Coe update.

Media Pressure

The IOMG has engaged highly reputable and expensive PR consultants to promote the case for an SoA. Our situation is being turned into a political issue not an insolvency, because the IOMG priority is to avoid liquidation and the risk of possible legal action over severe regulatory failures which we are investigating.

We need to counter IOMG media initiatives with our own. We need to raise the level of public debate to 100% recovery, not let the media get dragged down to microscopic comparisons of SoA v Liquidation. At the same time, we need to counter SoA publicity from IOMG if it is untrue, biased or if the SoA turns out to be an unacceptable compromise of our rights.

We intend to engage PR and lobbying consultants to support these essential media initiatives. A brief has been circulated to a short list of three consultants (selected from an initial list of six) and we intend to make a choice by the end of this week.

Call to action

Two actions by DAG members are now imperative:

  1. Register your name for legal support. 700 of you have already signed up in a matter of days. We really appreciate your support but we need more. Please link HERE for full details:

  2. Make a donation to help finance essential legal, lobbying and PR initiatives. Independent advisers do not come cheap, especially if they are first class. Please link HERE for full details:

Finally, thanks to everyone who has volunteered for team roles. The recruitment process is working well. We will be in touch with all of you soon and will post a separate note shortly identifying the roles still left to fill.
You will note that our new Treasurer has taken up post.

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