Foreign Currency Account Holders

  • bdsa
  • 10/10/08 02/06/13
  • a depositor
  • Offline
Posted: Tue, 21/10/2014 - 13:34

It is great news that we will be reaching the 100 percent recovery mark. Congratulations to all of us, and to the liquidators!! And heartfelt thanks to the stalwarts who have been keeping the news and analysis flowing on this site over the years.

But for foreign currency depositors the percentage received will not necessarily be 100 percent. My deposit was in US dollars, not Sterling. The amount was converted to Sterling on the date of the liquidation at the exchange rate that applied on that date, and all distributions have been in Sterling. Because of exchange rate movements I have to date received only 95.4 percent of my dollar deposit, not the 98 percent received by Sterling depositors. Does anybody know if there is any move underway to help foreign currency account holders get back 100 percent of their deposits?

3.25
Your rating: None Average: 3.3 (4 votes)

Comment viewing options
Select your preferred way to display the comments and click "Save settings" to activate your changes.

Foreign Currency Account Holders

  • bdsa
  • 10/10/08 02/06/13
  • a depositor
  • Offline
  • Tue, 21/10/2014 - 13:58

It is great news that we will be reaching the 100 percent recovery mark. Congratulations to all of us, and to the liquidators!! And heartfelt thanks to the stalwarts who have been keeping the news and analysis flowing on this site over the years.

But for foreign currency depositors the percentage received will not necessarily be 100 percent. My deposit was in US dollars, not Sterling. The amount was converted to Sterling on the date of the liquidation at the exchange rate that applied on that date, and all distributions have been in Sterling. Because of exchange rate movements I have to date received only 95.4 percent of my dollar deposit, not the 98 percent received by Sterling depositors. Does anybody know if there is any move underway to help foreign currency account holders get back 100 percent of their deposits?


Foreign Currency

  • bobbymann
  • 01/10/14 31/05/09
  • a depositor
  • Offline
  • Tue, 21/10/2014 - 15:10

Difficult one.
You have a point - all monies were converted (I think) to make liquidation more easy for everyone, so if that caused you a hit, then you have grounds for extra from the pot (in ethics not law).
On the other hand - the rate changes since then are a chance matter that wasn't an inevitable consequence of changing your money into sterling. Would you have supported paying back in some if the change had given you 100% and everyone else less?
I think I am kind of on your side overall.


Foreign Currency Accounts

  • bdsa
  • 10/10/08 02/06/13
  • a depositor
  • Offline
  • Tue, 21/10/2014 - 18:47

Bobbyman,

All I know is:

  1. My funds were deposited in a US dollar account with KSFIOM
  2. I did not ask for the bank to be liquidated
  3. I did not ask anyone to convert my funds to Sterling.

In line with the main objective of this web site, my hope, like everyone else, is to have my funds reimbursed 100 percent with any interest that should have accrued. There are quite a few other depositors in the same position as me. I wonder whether anyone has considered what if any action might be appropriate.


Stop the world !!

  • sambururob
  • 10/10/08 n/a (free)
  • a depositor
  • Offline
  • Wed, 22/10/2014 - 07:54

The aim is to get 100% back.....not make the world stand still.
The conversion for euros and dollars was made on a particular date at the going exchange rate. That determined the value of what you were owed. The time to object was then - not now when with hindsight you know which way currency rates have moved.
One of my accounts was in euros but I wouldn't like it to be reverted to euros. It works both ways as Bobbymann says.
The assets that are valued in euros (yachts and villas) are worth much less than before. Should that reflect on the total pot or just on euro account holders?
Rob


Foreign Currency accounts

  • Bigger Loser
  • 16/03/14 31/05/09
  • a depositor
  • Offline
  • Sun, 28/12/2014 - 00:06

Hi.
Firstly the biggest of thanks to the usual suspects for what you have done. You know who you are. I am deeply indebted to you all.

I am in the same boat regarding Foreign Currency. All of my funds where in USD. Shedloads of them. A lifetime's wages. I worked overseas. That was why I used S&F in the first place. It was nigh impossible to bank USD in the UK.
The USD/GBP exchange rate was picked by the administrators at a level that seems best to them at the time. Obviously they didn't have a crystal ball on exchange rates going forward. I disagreed but did very little in the way of complaining, largely for fear of putting noses out of joint and losing the lot.

So I suppose I'm asking if fellow foreign currency depositors want to lobby the administrators regarding the exchange rates that they used.

PS I used to be BigLoser but can't find the password so I have registered again.

Best Regards
Massively relieved


Foeirgn Currency Account Holders

  • bdsa
  • 10/10/08 02/06/13
  • a depositor
  • Offline
  • Tue, 30/12/2014 - 08:29

Hi Bigger Loser,

Like you I am not a currency speculator. Most of my income and expenditures are in US dollars. I opened the account at KSFIOM as a way of saving for my family's future. If I had wanted to play the foreign exchange markets I would have used a different vehicle.

I may be wrong but I don't think as depositors we should be framing this as an exchange rate issue. Conversion of our deposits to sterling was not a choice we made. The conversion was forced on foreign currency depositors by the Isle of Man liquidation process. For us this should be seen only as an issue of getting 100 percent of our deposits back, along with any interest that should have accrued. This is the primary objective of this group is it not? and clearly spelled out in the introductory page to this forum.

Sterling depositors have now received 100 percent back. I'm not sure how Euro depositors have fared. But US dollar depositors have definitely received less than 100 percent, in my case a little more than 97 percent.

RIght now I have no idea how to correct this and get our deposits returned in full. Perhaps we can do it through the parental guarantee. There may be some legal or financial specialists in this group, or on the Committee of Inspection who could shed some light on what options might be open to us.

Very grateful if anyone has any insights or advice to offer us.

Living in hope!


FOREX HOLDERS

  • mikepapa
  • 10/10/08 n/a (free)
  • a depositor
  • Offline
  • Wed, 07/01/2015 - 17:02

Dear bdsa and Big Loser,

I had funds held in both GBP and USD - and like other Forex Holders, I have lost out on the GBP return on my USD portion due to currency rate changes. At present, in GBP terms we have all lost out on income from our capital, through no fault of our own - other than that our deposits slipped through the cracks when the KSF Iom went bust, and Gordon/Alister/UK Gov would not bail us all out immediately. This left us at the mercy of Iom 'justice' and/or their system. The Iom rules governing liquidation required that all deposits were converted in GBP for the liquidation to proceed. Had Forex holders wished they could all have made a lot of noise at the time, which in my opinion would have made no difference, as the rules are the rules, are the rules…….. regardless of forex holders opinions!
Over the course of the liquidation, had currency rates moved in favour of forex deposit holders producing a profit, I rather think there would be little or no comment now! Hind sight is always 20/20 and regrettably this was not the case, however the fact that we have all got 100% or very close to 100% of our funds back is a credit to the Liquidator and our colleagues on the COI.
Lets be positive now and see if Mike Simpson et al; can squeeze a few more pence out of the pot, for loss of income, and indeed the Parental Guarantee.

May I wish you all the very best for the New Year!!

Kind regards,

Mike