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  • #141
  • Jan 1, 2008 11:35pm Jan 1, 2008 11:35pm
Quoting coscorp
Onu - according to what I was told yes - fully segregated - but thanks for the heads up - I'll get on it straight away...
From what I understand, the segregation restrictions put in place by the FSA don't really apply to forex accounts. I think some older threads on these boards covered that, talking about how it was misleading for a UK forex company to tell you they were fully segregated to imply protection.

Run a search on 'FSA' and you'll probably find something in these forums.
  • #142
  • Jan 2, 2008 5:07am Jan 2, 2008 5:07am
they just confirmed the full balance of my account whatever the amount is fully segregated.
Nihil inimicus quam sibi ipse Marcus Tullius Cicero
  • #143
  • Jan 2, 2008 8:29am Jan 2, 2008 8:29am
Quoting coscorp
they just confirmed the full balance of my account whatever the amount is fully segregated.
If you don't get that in writing ASAP I would be surprised.
  • #144
  • Jan 2, 2008 9:15am Jan 2, 2008 9:15am
Quoting coscorp
they just confirmed the full balance of my account whatever the amount is fully segregated.
From what I've read, most forex companies in the UK (if not all) include a section in their app about the Segregation claims, saying that the company will hold the money as a trustee, but money held on your behalf is not subject to the protections conferred by the FSA's Client Money Rules and that they can use the money whenever they want.

I'm no expert though, so it could be yours is fully segregated. I would be very very wary of trusting them at face-value... I would look at the disclosures on their application you signed.
  • #145
  • Jan 2, 2008 2:16pm Jan 2, 2008 2:16pm
  •  onu
  • | Joined Feb 2006 | Status: superior senior member | 746 Posts
Quoting coscorp
they just confirmed the full balance of my account whatever the amount is fully segregated.
Thatīs just like promotion...FSA doesnīt give a warranty!

Regarding the segregated account i got from Alpari UK the information that just the FIRST 5000 are segregated. Makes no sense neither.....
  • #146
  • Jan 2, 2008 5:00pm Jan 2, 2008 5:00pm
Hi,

I've reread the contract - it doesn't say anything about limits, nor does the fsa regulation - it states that all client money will be held in a separate account from that of the firm.

So I should be ok - better off than the poor guys with FXLQ for sure.
Nihil inimicus quam sibi ipse Marcus Tullius Cicero
  • #147
  • Jan 2, 2008 8:49pm Jan 2, 2008 8:49pm
Quoting coscorp
Hi,

I've reread the contract - it doesn't say anything about limits, nor does the fsa regulation - it states that all client money will be held in a separate account from that of the firm.

So I should be ok - better off than the poor guys with FXLQ for sure.
Get it in writing. If it is true then they should have no problem doing so. Taking the 15 min of time to get this done should be worth the value of your account, no?

  • #148
  • Jan 3, 2008 1:14am Jan 3, 2008 1:14am
Well - what does it mean - segregated account???? Refco had these things too. It means that the money is hold separately from operations budget. But what does this mean in case of bankruptcy or fraud? Nothing - it will be part of the overall budget for debths. You can be sure. The UK regulations are not securing your money. Forex will stay a risk investment.
  • #149
  • Jan 3, 2008 6:32am Jan 3, 2008 6:32am
Quoting coscorp
Hi,

I've reread the contract - it doesn't say anything about limits, nor does the fsa regulation - it states that all client money will be held in a separate account from that of the firm.

So I should be ok - better off than the poor guys with FXLQ for sure.
If that is the case, all the better for you I would be sure though - I'm fairly certain you have no special protection in case of bankruptcy or insolvency by the company, so I would check with them and get it in writing as someone else suggested.

They might just refer you to the client agreement, but in this day and age in the forex markets, can it hurt to try?
  • #150
  • Jan 3, 2008 7:13am Jan 3, 2008 7:13am
Quoting Don Marcus
Well - what does it mean - segregated account???? Refco had these things too. It means that the money is hold separately from operations budget. But what does this mean in case of bankruptcy or fraud? Nothing - it will be part of the overall budget for debths. You can be sure. The UK regulations are not securing your money. Forex will stay a risk investment.
Exactly - in the case of bancruptcy the court will decide who gets what - seggregated or not. However, in the case of UK-based firms, FSCS - www.fscs.org.uk - may be able to pay compensation.
  • #151
  • Jan 3, 2008 1:56pm Jan 3, 2008 1:56pm
Hi,

it's in the agreement I signed - by segregating I am appointed the role of secured creditor - ie I'm first in line which albeit doesnt cover all bases - does give an extra layer of protection - the company cannot use my money in any way to pay for its expenses. Forex obvioulsy is and remains a speculative high risk investment - I'm just trying to put aa much protection possible between my money and oblivion in the case the broker goes belly up. Plus the FSA is very attentive to what happens...unlike the NFA - as it appears today - which closes the pen after the sheep have gone away - and which has NO power whatseover - it has to turn over to the CFTC...as far as I know FSA does have power (lif I'm not mistaken it is the equivalent of the US CFTC and SEC in one)...and isn't scared of using it. For example if I ask to withdraw - they have maximum 1 (one) business day to comply or I can file a complaint - and they will have issues.

quote from FSA regulation.

The purpose of the client money rules is to ensure that, unless otherwise permitted, client
money is kept separate from the firm's own money. Segregation, in the event of a firm'sfailure, is important for the effective operation of the statutory trust that is created to protect client money. The aim is to clarify the difference between client money and general creditors' entitlements in the event of the failure of the firm.
Nihil inimicus quam sibi ipse Marcus Tullius Cicero
  • #152
  • Jan 3, 2008 4:52pm Jan 3, 2008 4:52pm
suggest you start a new thread prier to steering this one completely off topic..

Quoting coscorp
Hi,

it's in the agreement I signed - by segregating I am appointed the role of secured creditor - ie I'm first in line which albeit doesnt cover all bases - does give an extra layer of protection - the company cannot use my money in any way to pay for its expenses. Forex obvioulsy is and remains a speculative high risk investment - I'm just trying to put aa much protection possible between my money and oblivion in the case the broker goes belly up. Plus the FSA is very attentive to what happens...unlike the NFA - as it appears today - which closes the pen after the sheep have gone away - and which has NO power whatseover - it has to turn over to the CFTC...as far as I know FSA does have power (lif I'm not mistaken it is the equivalent of the US CFTC and SEC in one)...and isn't scared of using it. For example if I ask to withdraw - they have maximum 1 (one) business day to comply or I can file a complaint - and they will have issues.

quote from FSA regulation.

The purpose of the client money rules is to ensure that, unless otherwise permitted, client
money is kept separate from the firm's own money. Segregation, in the event of a firm'sfailure, is important for the effective operation of the statutory trust that is created to protect client money. The aim is to clarify the difference between client money and general creditors' entitlements in the event of the failure of the firm.
  • #153
  • Jan 3, 2008 6:59pm Jan 3, 2008 6:59pm
hi,

I apologize it wasn't intentional - was simply answering some valid points others' made. This situation reminds everyome yet again that there is no real protection for your money if a broker does go bust...all you can do is pray. In the UK they have attempted to add something more concrete to just prayers...if it's sufficient is what we were debating...but enough...

Tomorrow we should get an update on the FXLQ situation..let's hope everything pans out for those in the middle of it.
Nihil inimicus quam sibi ipse Marcus Tullius Cicero
  • #154
  • Jan 3, 2008 10:53pm Jan 3, 2008 10:53pm
Once again - separated from operational money of the company. This is ok. But if the operational money does not cover the liabilities they will use it - you may be sure. This is the remaining risk.

FX is a high risk investment - and you cannot get 100% security on one side and high return on the other. This will not work. This will never work. This is the nature of the business.
  • #155
  • Jan 4, 2008 1:38pm Jan 4, 2008 1:38pm
Anyone got new news for fxlq? Today is Jan 4, hearing date.

fxedge

Quoting forexmgr
JAn 4th is the date, Got a call from a source, they have a Hearing at court then, they are around 1-3% short of sending everyone back the money, I can't see where they either don't have a buyer, or can't find the funds...

well, I will post again Jan 4th, or 5th when I know more.

Andy <<Cowboy>> Stapleton
  • #156
  • Jan 4, 2008 1:54pm Jan 4, 2008 1:54pm
The hearing has been postponed to Jan 28th.

Quoting forexedge
Anyone got new news for fxlq? Today is Jan 4, hearing date.

fxedge
  • #157
  • Jan 4, 2008 2:05pm Jan 4, 2008 2:05pm
Quoting BenQ
The hearing has been postponed to Jan 28th.
I hate to let people down, but everyone should get used to this type of thing happening.

Proceedings like this are always delayed time and time again.

And don't get fooled into thinking it is easy to settle a buyout either. The parties involved can easily muddy up the waters and cause even more delays.
  • #158
  • Jan 4, 2008 4:41pm Jan 4, 2008 4:41pm
It has not been confirmed yet that the 28th is the new date for the hearing but it could be....

Peter said that there was a mutual agreement between the CFTC and FXLQ to delay the hearing...Supposidly there was conflicting schedules for both parties....very vague....

Also there are only certain times of the month the judge will hear these cases and one of them was Monday Jan 21st but that is a Federal Holiday so they are working on another date....most likely the last week in January...

He is aware there are a lot of anxious customers and plans on getting information out on their site ASAP...
  • #159
  • Jan 4, 2008 4:57pm Jan 4, 2008 4:57pm
Wow, another two months to figure out whats going on. mutual agreement to delay? wow, hopefully, they actively go find more money for us.

Quoting TripTrap
It has not been confirmed yet that the 28th is the new date for the hearing but it could be....

Peter said that there was a mutual agreement between the CFTC and FXLQ to delay the hearing...Supposidly there was conflicting schedules for both parties....very vague....

Also there are only certain times of the month the judge will hear these cases and one of them was Monday Jan 21st but that is a Federal Holiday so they are working on another date....most likely the last week in January...

He is aware there are a lot of anxious customers and plans on getting information out on their site ASAP...
  • #160
  • Jan 4, 2008 6:28pm Jan 4, 2008 6:28pm
sounds like fxlq is trying to buy time to come up with more money so they won't get charge for any kind of crime.
If I Go Broke Trying Then I Will die happy.
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