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Apparently money with Sporting Options was supposed to be ring-fenced and despite regular assurances there was only 100 grand left after it went bust.
An email from Betfair to a customer some time ago not recently stated
"If the Royal Bank of Scotland goes under, customers will be able to trace their funds and have an improved chance of recovery as well as being able to get in line with other creditors of the bank. Short of having some form of security this is therefore the best possible protection we can give our customers above and beyond the ring-fencing rule (ie that there is always enough in our accounts on trust to pay all customers back at any time)"Anyone care to translate the reply from Betfair, is all our money safe? what happens if the RBOS or Betfair go tits up or even both do? Do we get all our money back? How much is it safe to have deposited with Betfair?
There would be a problem if Betfairs bankers went bust because even if BF have the money ring fenced the money would not be avaiable due to their bank going under and the Government K50 guarantee would not apply to BF accounts.
Same scenario could happen if your Solicitor is holding money on your behalf in his Client account. Bank goes under,solicitor has not got the money to pay you.I think you would be covered by the FSCS (£50k) in this instance.
I work for an investment broker – all our client money is ring-fenced for the event of our insolvency, and held with the 5 major UK clearing banks. In the event of the default of one of these banks, each investor is covered by the FSCS.
Your cash with Betfair would be lumped together with any other RBS deposits though, so if cash in Betfair plus other RBS deposits was more than £50k you wouldn’t be covered for the full amount.
My advice is to use Debit cards only which incur no deposit/withdrawal charges hence enabling money to be moved in and out of Betfair (or whoever) regularly at a whim.
Personally I see no point in leaving more than sufficient funds for a day’s betting on deposit. Any winnings are withdrawn at close of play and any deposit losses topped up the next time I plan to bet
Why lend Betfair your money, earning them interest, when it can cook in the safety (ha ha) of your bank, earning you interest
I agree with Drone, you should be leaving as little in there as possible.
Betfair don’t open a separate account for each customer with the bank. If their bank goes under you might get some money back in 12 months or something. All the talk of ring fencing is just talk.
The betfair statement means you’ll have to try and get your money back yourself because you will be able to trace it.
Same scenario could happen if your Solicitor is holding money on your behalf in his Client account. Bank goes under,solicitor has not got the money to pay you.
That’s not entirely correct. Client monies will be protected up to £50K per client.
My advice is to use Debit cards only which incur no deposit/withdrawal charges hence enabling money to be moved in and out of Betfair (or whoever) regularly at a whim.
Personally I see no point in leaving more than sufficient funds for a day’s betting on deposit. Any winnings are withdrawn at close of play and any deposit losses topped up the next time I plan to bet
Why lend Betfair your money, earning them interest, when it can cook in the safety (ha ha) of your bank, earning you interest
I would agree with that if deposits and withdrawals were both instantaneous but whereas deposits are taken from your account immediately it can take several days for withdrawals to appear in your account.
If the worst was to happen is it possible that all your deposits would be processed but none of your withdrawals if you withdrew every night and topped up the following day.
Would it not also not involve having several times your bank to fund the deposits as none of the withdrawals would show up for a few days?I would agree with that if deposits and withdrawals were both instantaneous but whereas deposits are taken from your account immediately it can take several days for withdrawals to appear in your account.
If the worst was to happen is it possible that all your deposits would be processed but none of your withdrawals if you withdrew every night and topped up the following day.I believe the clearance of electronic transfers is in the process of being speeded up, and not before time
I’m not a daily bettor hence the scenario you describe doesn’t apply to me, but I take your point that for the heavy, regular punter there may be a problem in cashflow due to the difference in clearance speeds between deposits and withdrawals. Really you just have to adjust how often you deposit to suit your own pattern of betting, but don’t leave more than is absolutely necessary stagnating in Hammersmith.
Just strikes me as common sense, more so given the current parlous state of the banking system
Buddy, can you spare a dime?Benny is correct.
While Betfair aren’t covered BlueChariot, their client money has to be ring-fenced (auditing purposes) and is sat in a bank account.
However – The increased £50K limit is shite for organisations and only there to give comfort to private investors (and small time-ish at that). Basically to stop a ‘going to the matresses’ scenario.
You would potentially get your share back of the guaranteed £50k – mmm… how much would that be, how many customers have ‘deposits’ with the firm ?
Because that is the problem. The RBS account is a pooled firm account and the limit applies just the same as it does to you and me.
In fact, thinking about it – and I am a bit merry so…
a) Are Betfair forced to uncover the identities of their users who are laying etc. ? – I don’t think so, although I must admit I could have missed a law change.
b) As Tuffers says, Solicitors monies are segregated and held in the name of the client and therefore are covered by the guarantee.
Looking at the other thread regarding Betfair requiring proof of idenitity, I wonder whether they are considering one pooled account full of Mr & Mrs Jones’ – with a £50K limit – vs being able to reclaim £50k per customer (providing of course that they have that balance or more).
I dunno, fairly pissed but this rule could be very grey.
As a general rule wilson with everything to do with money, investments, banks, pensions, etc .. just imagine what’s the worst for normal people and that will probably be what it will be.
and Dave, I would love to say it’s the national pessimsm, pessiesems, pissemissem, pessemism – I’ll get there, hang on.
But having spent 18 mths in Dundee and 2 years in Edinburgh I know I’m right, it’s not that you’re all pessim’s but you are in fact – very correct.
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