Help please: Apply to DCS or deal directly with Liquidators? 2nd distribution amount? Funding for DCS?

  • ksfmoney
  • 24/10/08 31/05/09
  • a depositor
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Posted: Tue, 04/08/2009 - 15:05

I would be very grateful for some help in making my decision whether to apply to the DCS. I have two key questions below that I would welcome help with. Thanks.

I understand that the 1st distribution will be around 14.5%.

Has there been any suggestion of the likely 2nd distribution percentage?

My recollection before this website was re-vamped was a possible further 15% , making a cumulative distribution of around 30% in 2009 but I can't find anything now.

Like most people, I guess, I have an inherent distrust of IOM authorities and I am particularly concerned with the following DCS extract which basically states that it may take more than a year to get the full 50,000 compensation. If that's the case then I will deal directly with the Liquidator as the only benefit I see of applying to the DCS is to get the first 50,000 faster and this may not occur.

Does anyone know if the DCS will be struggling to meet its goal of paying all claimants by September 2009 due to lack of funding? Thank you

Extract from the DCS Guidance Notes on the DCS website:
"There is a limit on the amount of contributions which the Scheme Manager can levy to meet the costs of compensation to depositors in any one year. If the claims of depositors on the Scheme in any year exceed the amount of levies and any borrowing, you may receive in that year only part of any compensation due to you; any balance due to you will be carried forward to succeeding years and paid as soon as funds are available. It is the Scheme Manager's current intention and objective to pay all compensation due to claimants by September 2009."

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Compensation should be paid soon

  • carnel
  • 10/10/08 31/05/09
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  • Fri, 07/08/2009 - 08:48

I am expecting to receive the full amount on or soon after 1st September. On the DCS site there is the following FAQ.

Q. How soon will I receive any compensation from the Depositors’ Compensation Scheme, and how much is this likely to be?

A. The Scheme Manager has stated that claims received before 4th July 2009 ,and fully validated, will be in the first payment run that is planned to be on 1st September 2009. However, this does not mean that later submissions will suffer significant delays in receiving payment.

The Isle of Man Government has agreed to provide sufficient funding to the DCS to enable all compensation payments in respect of eligible claims to be paid in a single payment.

liquidators or DCS

  • Anonymous
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  • Thu, 06/08/2009 - 11:07

Having toyed with this question for a long time too, I think I'm going to take my chances with the liquidation. While an early application for the DCS might have given a faster return of 50.000, if later payouts cannot be guaranteed as being for the full 50.000, I feel its better to keep my rights and stay with liquidation. Thereby I will also avoid giving IoM government the satisfaction of being able to say they're helping me, and be able to use that in their PR. While I am desperate for the return of my savings, this whole situation is diabolical. The constant flow of information that gets churned up continually endorses the principle of holding out for nothing less than 100% return.

Having said this, I still think the DAG should be advising us on this matter. And whatever happened to HNW?

DST reply - DCS or not?

  • anrigaut
  • 19/10/08 30/10/09
  • a depositor
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  • Mon, 10/08/2009 - 10:01

Lodge with Liquidators or DCS?

  • ksfmoney
  • 24/10/08 31/05/09
  • a depositor
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  • Thu, 06/08/2009 - 22:23

Like yourself, I have thought long and hard about this and I have decided to deal directly with the Joint Liquidator and forego the DCS route.

I would need a distribution of 42% to reach the GBP 50,000 compensation amount and my guess is that a cumulative distribution of 33% may be reached by Dec 2009 producing for me about GBP 40,000. Much as I would like and need the GBP 50,000 asap, I have not seen any firm assurances that the DCS has sufficient funds readily available to pay everyone who is eligible to apply for compensation and the track record of the IOM authorities has been to prevaricate every step of the way. It would be nice to receive the 50k from the DCS soon and then deal directly with the Joint Liquidator but I can just see the administrative nightmare involved in getting rights re-assigned from the DCS to the Liquidator. Currently, I still have only seen comments of verbal assurance that re-assignment will be available: even if formalised, I would expect a process fraught with inefficiencies.

With a likely difference of GBP 10,000 for me by the end of 2009 between the 50k compensation amount and the 40k distribution, I think I shall sleep better knowing that I am not dealing with an intermediary who, in my view, so spectacularly failed in their duty, before and after the Brown/Darling shenanigans, to ensure depositors were adequately safeguarded.