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LLOYDS is going to FLY

lse:lloy

#1137

Call me stupid but I have been loading up, when the news turns your too late.

It is a gamble, I currently hold many losing trades, however I expect they will return shortly. If news worsens, my losses go deeper.
My big concern is a China tariff response. Brexit will eb and flow for a while.


#1138

Has anyone on here had exspirence with S v s securities?
There seems to be speculation on line there cliints shares not "ring fenced ".
I notice all closed down brokers clients always end up with share center.
Has share center some connection to government?


#1139

I remember us chatting about different brokers last year @Ripley94… and likelihood/what happens when they go into administration.
SVS we talked about too… FCA registered but only allowed LSE trading.

We’ll see how long it takes for investors to get their money back and if they get it all back… I think the FSCS pot only covers for £50k.

Unless you hear from someone inside SVS you won’t find out how effective their segregation was for some time.

As in other parts of the Finance industry… particularly in the UK… the low hanging fruit has all been picked… you can expect more small or barely profitable enterprises to go out of business in coming years.


#1140

Hi @Ripley94, No Ive never used or encountered SVS before today, looks like they are likely out of business now - according to this link:-

Hope you didnt have a lot of money in there, if any at all. I dont know but I’m guessing that all brokers must be FSCS protected in order to operate ?. If so then provided you havent gone beyond the FSCS limits you ought to get your money back (I hope for the sake of their customers ?) eventually, might take a long time though.

Scary stuff. Hope that you arent affected.

ATB

Pref


#1141

Hi @swamp_rat, Do you mean loading up on LLOY shares ?. Well long term I guess 51.xx should be a good price, but might be a very long term project - as per regardless.

I do hope that you arent becoming as fixated on LLOY as he is, IMV holding a diverse range of assets (including exposure to different sectors, countries and currencies) is essential to avoid significant losses due to unpredictable events. I thought preference shares were SUPER DUPER safe - until after about 8 years they suddenly werent…and I lost about £35,000 as a result. IMHO relying on just one investment (WHATEVER IT IS) is just highly risky - unless its a short term trade with a stop loss etc. Something will crop up to catch you out, its just s*ds law !.

You are “brave” spread betting with leverage. I gave spread betting a try some while back now but gave up on it as it was EXTREMELY easy to lose a shed load of money. I easily disposed of about £2,000 of virtual money on a few trial trades, enough to know that it was not for me. And with leverage things would be far far worse.

I wish you luck, you may well need it !!.

ATB

Pref


#1142

I am afraid I have much more then that in it but hardly any cash.
I thought the shares where ring fenced and only cash needed protection.
I will keep you posted.
I quess you think my understanding is wrong.


#1143

Hi Again @Ripley94, Sorry to hear that. Pretty well all brokers these days do the “nominee accounts” thing, which means that ALL of the customers in share X are held on ONE account which is usually owned by a separate company eg Hargreaves account customers shares are all held by Hargreaves Asset Management (HLAM) which is a separate company. Unfortunately this means that any shares that you hold do not have your name on them in the share register and whoever gets allocated to sorting the problem out will need to go through the companies asset management records to work out what shares you held.

It is for this reason that I keep a copy of my portfolio downloaded from my brokers website monthly and download and keep all of my contract notes forever. At least that way I have a complete record of what they are holding on my behalf. I hope that you have been keeping records too. If not its too late now, but if you have any other brokers I would suggest that you take action to address this issue.

Holding your shares in certificated form gets around these ownership issues as your name then appears on the share register and is your proof of ownership. But then you cant do online share dealing…

The FSCS limit is also a problem though I believe that it has now been raised to £85,000 see link below

Some people have multiple brokers simply so that they can maximise their FSCS protection. But if you have a large investment portfolio then having to use a mass of different brokers accounts to maximise your FSCS coverage doesnt seem sensible to me, though I do do so for cash. I know that other people here do use multiple brokers, but I have stuck with Hargreaves as it is probably the biggest UK broker there is and just put up with the trading costs…

I wish you the best of luck with getting this sorted out.

ATB

Pref


#1144

Not necessarily… it depends on their FCA status and if they are part of FSCS protection or not.
You can check that here: https://register.fca.org.uk/

PS. You’re right, it went up to £85k in April from £50k


#1145

Hi Pref,
I have 3 spread bets open on Lloyds and one portion of real shares in Lloyd’s within my ISA.
Fixated not but a general understanding of the share price makes me feel comfy. I may well be wrong.
Currently held losses on the just Lloyd’s sb’s well over your £2k but I fear not. 5 figure losses currently held over all bets within my SB portfolio.
The losses are certainly higher than my usual but also under my current profits so I’m relatively relaxed.

I do however understand that a big loser is inevitable. 87% of the people who bet lose, I’m only 7 months in but I’m either 13% or I’m about to see a big old loser.


#1146

If I was religious I would pray for you… but I’m not !!!

OUCH !!!

Pref


#1147

Is this one going to take off soon? Or is it subject to the pilot’s strike?

Cheers,

Frog


#1148

Hi @frog_in_a_tree, Still basking in your AZN and VOD big positive price movesI guess ?. I think AZN was one of only a very few things that was up on Friday. A LLOY win would have made it a triple success - probably why it didnt happen…no-one is that lucky.

ATB

Pref


#1149

I’m sure you will be fine… but note that big doesn’t mean safe necessarily.
Just as when choosing your investments… and diversifying them to lessen risk… you at least, maybe should check that the company you are entrusting your portfolio and cash with is a solvent and ongoing concern periodically.
ie. are they well capitalised? Does the balance sheet look OK?
ie. Does the Financial Ombudsman Service (FOS) have lots of client complaints lodged against the company?

HL has a relatively simple business model today… if they started operating differently or were haemorrhaging clients then it would be a different matter.


#1150

I only know what I read in the Press… nothing more.
Yes, let us know if they communicate with you.

I’m sure you will be OK… just might take time to sort it all out.

When I mentioned segregation I only meant that you can’t know what they do behind the scenes… supposedly they segregate client assets from assets of the brokerage firm itself… but do they?

Have you tried logging in and trying to withdraw your free cash?


#1151

Thanks again for that information prefinvestor1
I did enquire and was assured held away like you say h l does, and again in something with there name on it so sounds very like the h l way.
( at least not with third party is no worse then h l way of doing it )
As I posted before years ago I was with wills and co they were shut down for wrong doing all my shares ended up being transferred to the share center.
Even S v s considered them rogues so I’m hoping I will not be worse of here and same outcome.
Knowing my luck it won’t be as lucky and I’ve 10 x as much here.
Are you agreeing its the cash which might need the protection and the shares if they have followed the rules should be safe?
I have just noticed the c e o has a Greak name I was in Glbo
So that’s a concern!
Shares are risky enough whith out the risk of losing when it’s not the share going down? Or company you chose to invest in going bust.


#1152

And thank you J_Westlock.
Yesterday you were unable to log in to Svs.
I would of tried to withdraw any cash if I could of but it would only be divs and I take that when I see it.
In the Isa always buy a share sometimes selling something to make the purchase worthwhile.
So very little cash in either.
No one answered is the share center a government run thing.
As they seem to always be admiisratets receivers.
They must be safe?


#1153

Hi Again @Ripley94, Sorry but I can’t give you any definitive answer to your question about cash. I can tell you that with Hargreaves they hold the cash in a number of regular high street style bank accounts as I recall, to which FSCS deposit type protection then applies. So the risk then is not so much the broker going bust but the bank the money is held in going bust - probably unlikely. But it depends exactly how SVS operate. A lot may depend on the state of their records AND of course if there has been any fraud going on…I have seen no suggestion of that anywhere, but it has been known to be an issue at other brokers that have got into trouble.

ATB

Pref


#1154

Share Centre isn’t a part of Government, it’s a company: Share Plc… been going years now.
I assume… but don’t know… that they spoke with Administrators to gain previous portfolios… don’t see why it always has to be Share Centre.

Noone is 100% safe… companies are just that… there to make a profit for their own shareholders… and are a risky venture sometimes… whether they use multiple bank accounts isn’t the issue here.

If your broker goes bust… your portfolio and cash are on the line. It all depends precisely what has happened at the company and then if Administrators get involved… how their work is paid for… they can and will cover their costs out of client ‘money’… as I understand it that means both cash and any assets.


#1155

Thanks again for info and views, be interesting to see what assets they would chose to sell maybe an individual’s largest holding.


#1156

Hi Ripley94

We may all disagree sometimes, but at the end of the day we are all human on here, hoping you be OK

Please keep us updated, hopefully the clever chaps here will help like Pref / westlock :slight_smile: will make sure you don’t lose any savings or shares