ipagoo EMI kaboooooomm

[regis1]

Winter already here!
https://www.fca.org.uk/news/news-stories/ipagoo-llp-has-entered-administration

 

[Bmw850]

All those emi's always fall with the time unfortunately for a reason or another.

 

[Martin Everson]

They didn't last long....lol.

 

[Marie Manila]

Does/did anybody have an account there?
Did you got your money back or is it still on hold?

 

[Elve]

I had 1200 EUR in my Ipagoo account and I have not received anything so far.

Last email received on February 10:

Dear ipagoo customers,

Recent communications

You may have recently received an email from an organisation seeking to form a creditors’ committee. Please be aware that that communication was not sent by the Joint Administrators, nor do they endorse its content. The Joint Administrators are concerned at the manner of the communication and the disclosure of individual email addresses.

The communication is factually incorrect. The Joint Administrators have no desire to close down ipagoo LLP. The statement indicating that nobody knows what has happened to client funds, in particular, is simply untrue. The Joint Administrators have undertaken a comprehensive and focussed reconciliation exercise to determine the aggregate of client funds and balances held by each client.

In order to allow a distribution of client balances, the Joint Administrators will obtain a court order approving the process. As part of seeking that order, the Joint Administrators will have to demonstrate to the court that proper information regarding balances has been obtained and those balances reconciled against ipagoo’s records. That is the very opposite of the disappointing and unfortunate statement made in the communication you may have received.

Progress of the administration

The Joint Administrators continue to work to the timetable previously advised. By way of update, the reconciliation is substantively complete and the necessary court documents have been prepared. These are subject to some final approvals, after which the Joint Administrators plan to file their application at court in order to obtain a suitable hearing date. The date of the hearing will depend on the court’s procedures and the availability of a suitable judge, but the Joint Administrators will, as far as they are able, request an urgent hearing of the application. Subject to the variable factors, the Joint Administrators still envisage obtaining a court order by the end of Q1 2020.

Please find attached a list of frequently asked questions which have arisen over the course of the administration and which we hope will be useful to you.

Creditors’ committee

For your information only, a creditors’ committee under the Insolvency Act 1986 and the Insolvency (England and Wales) Rules 2016 may be established by invitation from the Joint Administrators, either (i) when they are seeking creditors’ approval to the administration proposals (note that a creditors’ committee in respect of the administration of ipagoo was not formed at that stage), or (ii) at any other time when the Joint Administrators seek a decision from creditors. There appears to be no independent right for creditors to requisition a decision to establish a committee. However, the Joint Administrators will seek to engage with and consider the views of any informal creditors’ committee formed at any other stage, notwithstanding the fact that it may not amount to a formal creditors’ committee under the Insolvency Act 1986 and the Insolvency (England and Wales) Rules 2016.

Communicating with the Joint Administrators

Finally, please do not be concerned if you have not received the email referred to above, regarding forming a creditors’ committee. If you have previously received a letter from the Joint Administrators regarding your account balance and not responded to either confirm or dispute the balance, please respond at your earliest convenience. Otherwise, you do not need to reply to this email.

Yours sincerely,

For and on behalf of Jason Baker

Joint Administrator

Ipagoo LLP

 

[Martin Everson]

The Joint Administrators have undertaken a comprehensive and focussed reconciliation exercise to determine the aggregate of client funds and balances held by each client.

That's scary

This should take 2 minutes to reconcil. You normally have a list of client balances where the total client balances in each currency should equal the segregated client funds total in each currency. Any mismatch between the two means funds are missing or clients assets have not been segregated properly.

However most likely the administrators are running up the bill for their fees . They maybe just dragging the process out and milk a daily rate from ipagoo. btw the administrators costs can and will come out of clients funds if ipagoo's funds cannot cover administrator bills sadly.

This happened with another UK company as I discussed below:

https://www.offshorecorptalk.com/th...s-if-uk-broker-goes-bankrupt.24893/post-87758

 

[Elve]

Any mismatch between the two means funds are missing or clients assets have not been segregated properly.

That is the reason why Ipagoo was suspended, they have allegedly taken client funds to develop the company.

I agree with you, the process of determining the totality of the funds is unnecessarily prolonged, it is absurd so many months for that and all with the aim of charging a maximum of administrative expenses.

 

[Martin Everson]

That is the reason why Ipagoo was suspended, they have allegedly taken client funds to develop the company.

Oh sh*t that's bad . That's like MF Global all over again. Thats the one thing I fear most about using any EMI. You only have their word that they have correctly segregated client funds from company funds. Regulators cannot rely on self policing of client funds segregation by the EMI. There needs to be some real-time/overnight reporting to regulators to prevent this happening and allow them to pull the plug immediately as soon as balances do not reconcile. The FCA needs to start earning its money rather than acting as a clean up operation after sh*t has hit the fan.....clowns.

 

[Elve]

Just to inform that I received a refund of approximately 50% of my Ipagoo balance.

That was unexpected after more than 3 years

The other 50% were lost due to mismanagement and expenses of the new administrator in charge of liquidating the remaining funds.

 

[Martin Everson]

The mismanagement is sad but as I mentioned administrators love to run up the bill by dragging their feet. Can't hate them as anybody in that line of work would do the same to.