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By Tom Winnifrith | Tuesday 11 July 2017
iii, aka Interactive Investor, do not seem happy at being called total bastards for changing the terms for holding client money so that clients, that is mug punters like you and I, get more risk and iii gets more money. It says that this is not the objective of what is going on any anyhow other stockbrokers such as Hargreaves Lansdown and the Share Centre are doing the same thing. As such I am happy to clarify " I apologise for saying that iii are total bastards. I meant to say that iii like many other stockbrokers including Hargreaves Lansdown and the Share Centre are total bastards." The iii spokesman is keen that I put this all in context. iii's comments are in bold, my translation service is below.
Interactive Investor’s primary objective is the security of a client’s data, cash and assets.
Welcome to the one capitalist enterprise that is not interested in making profits or paying its directors well. Think of us as the Mother fucking Theresa of broking - we are just so fucking selfless you would not believe it.
Current FCA rules state that client money must not be placed out on unbreakable deposits of more than 30 days. Due to the capital impact of accepting CASS deposits of 30 days or fewer, a number of banks have stopped accepting client cash altogether. This in turn has meant that investment platforms have been facing difficulties in maintaining the necessary diversification of client money as per their agreed treasury policies. The FCA has recognised the problem, is reviewing the rules and in the meantime has invited platforms to apply for waivers to the 30 day rule as an interim solution. Interactive Investor has applied for this waiver in order to ensure that our strict treasury requirements – which have the express purpose of maintaining robust security for our clients’ cash - continue to be met
The fact that we are putting client money at a marginal extra risk as per yesterday's expose is all the fault of the evil banksters and useless FCA. Don't blame we poor stockbrokers, remember we are all like Momma fucking Theresa.
The waiver is not intended to increase interest income for the investment platforms but to ensure that investment platforms are able to keep deposited client funds diversified and secure. Hargreaves Lansdown, Share Centre and other investment platforms have also applied for and been granted the right to place their client money on deposit for 95 days.
We are not in a position to benefit from the rates stated in the Share Soc report due to our classification as a financial institution.”
The fact that we will make additional income from this exercise is not disputed. We and other brokers are as a result making additional profits - though not as much as ShareSoc claimed - and in order to diversify where cash is held to reduce risks for clients we are increasing their risks in other respects. Because we do actually care more about profit than our clients ( see above) we are not declaring the additional money WE will make on on their funds to clients in an open and transparent manner or pass any of it on.
iii are not the only sinners, we are not the only total bastards in the stockbroking village. Among the others generating a nice bit of extra profit will be the Share Centre run by devout Christian Gavin Oldham. As Mr Oldham works out how much more money he will make on his clients funds, he no doubt has ringing in his ears, Acts 20:35 from the King James Bible:
I have shewed you all things, how that so labouring ye ought to support the weak, and to remember the words of the Lord Jesus, how he said, It is more blessed to give than to receive.
Or maybe Gavin reckons Luke got that bit wrong?
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