This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.guardian.co.uk/money/2012/oct/05/regive-investors-waiting-bond-refunds
The article has changed 7 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| ReGive investors still waiting for bond refunds | ReGive investors still waiting for bond refunds |
| (6 months later) | |
| Savers who put thousands of pounds into an unregulated bond with mutual society ReGive are still waiting to get their money back weeks after the Financial Services Authority ordered the organisation to repay it. | Savers who put thousands of pounds into an unregulated bond with mutual society ReGive are still waiting to get their money back weeks after the Financial Services Authority ordered the organisation to repay it. |
| The Guardian understands that ReGive still owes a number of investors £71,000 invested in the mutual society's one-year fixed-rate savings bond earlier this year. The bond promised investors a market leading rate of 5% on money invested in social enterprises, but although the company was registered with the FSA it was not regulated by the watchdog. | The Guardian understands that ReGive still owes a number of investors £71,000 invested in the mutual society's one-year fixed-rate savings bond earlier this year. The bond promised investors a market leading rate of 5% on money invested in social enterprises, but although the company was registered with the FSA it was not regulated by the watchdog. |
| The Guardian raised concerns about the organisation in July, and a month later the FSA ordered ReGive to unwind the 5% bond, cancel all applications and refund all investors. | The Guardian raised concerns about the organisation in July, and a month later the FSA ordered ReGive to unwind the 5% bond, cancel all applications and refund all investors. |
| At the time, ReGive wrote to investors to tell them about the FSA's ruling and that they would soon be reimbursed. It now transpires there is a shortfall in the money owed to investors, which the Guardian understands to be £10,500. | At the time, ReGive wrote to investors to tell them about the FSA's ruling and that they would soon be reimbursed. It now transpires there is a shortfall in the money owed to investors, which the Guardian understands to be £10,500. |
| ReGive's founder, Abdul Muttakin Robbani, who also goes under the name Mark Robbani, said most of the bond holders were refunded within a few days, and that he was certain all investors would get their money back. He blamed the FSA for holding up repayments. | ReGive's founder, Abdul Muttakin Robbani, who also goes under the name Mark Robbani, said most of the bond holders were refunded within a few days, and that he was certain all investors would get their money back. He blamed the FSA for holding up repayments. |
| "The FSA will not approve these [outstanding] refunds unless 100% of the funds can be refunded at the same time," ReGive said in a statement. | "The FSA will not approve these [outstanding] refunds unless 100% of the funds can be refunded at the same time," ReGive said in a statement. |
| "The FSA approved the previous refunds because it believed, and so did we, that there were sufficient funds to repay all investors in one go. However, due to calculation errors made by one of our banks, it transpired that there was a very small shortfall representing just over 7% of the total refund amount in the refund account. | "The FSA approved the previous refunds because it believed, and so did we, that there were sufficient funds to repay all investors in one go. However, due to calculation errors made by one of our banks, it transpired that there was a very small shortfall representing just over 7% of the total refund amount in the refund account. |
| "We cannot provide this money from other investor funds and are in the process of securing funds from third-party non-investor sources for this, which is unfortunately taking longer than anticipated." | "We cannot provide this money from other investor funds and are in the process of securing funds from third-party non-investor sources for this, which is unfortunately taking longer than anticipated." |
| One retired investor in his sixties, who is still owed £20,000 by ReGive, said he was having sleepless nights. "I used to work for a major bank and I would wake up in the night worrying about things – but I was paid for that. Now I wake up in a panic worrying about this money." | One retired investor in his sixties, who is still owed £20,000 by ReGive, said he was having sleepless nights. "I used to work for a major bank and I would wake up in the night worrying about things – but I was paid for that. Now I wake up in a panic worrying about this money." |
| He added: "I've been trying to get answers about this for weeks. It's our money – why are we not being told what's happening? Originally the FSA said I would get all my money back, now it won't say anything." | He added: "I've been trying to get answers about this for weeks. It's our money – why are we not being told what's happening? Originally the FSA said I would get all my money back, now it won't say anything." |
| ReGive's website has recently shut down and been replaced by a holding page that says: "We are sorry for the inconvenience. Our site is currently in maintenance mode. Please try back later or email: info@regive.org.uk" | ReGive's website has recently shut down and been replaced by a holding page that says: "We are sorry for the inconvenience. Our site is currently in maintenance mode. Please try back later or email: info@regive.org.uk" |
| Robbani said the website is undergoing maintenance ahead of the launch of a new two-year bond. | Robbani said the website is undergoing maintenance ahead of the launch of a new two-year bond. |
| The FSA said: "Please contact us if you have invested in any savings bonds or other products – including the 6% AER one-year bond – offered by ReGive and have not already been in touch with us. | The FSA said: "Please contact us if you have invested in any savings bonds or other products – including the 6% AER one-year bond – offered by ReGive and have not already been in touch with us. |
| "In August 2012 we told ReGive Limited, an industrial and provident society, to 'unwind' its 5% bond by cancelling all applications for the bond and refunding all those who had invested. | "In August 2012 we told ReGive Limited, an industrial and provident society, to 'unwind' its 5% bond by cancelling all applications for the bond and refunding all those who had invested. |
| "ReGive did agree to contact all investors, explain the position and provide refunds – however we are aware a number of investors have still not had their investment returned. | "ReGive did agree to contact all investors, explain the position and provide refunds – however we are aware a number of investors have still not had their investment returned. |
| "As part of the action we have taken, we directed ReGive not to dispose of or otherwise deal with any of its assets. | "As part of the action we have taken, we directed ReGive not to dispose of or otherwise deal with any of its assets. |
| "We want to ensure all investors are treated fairly and repaid as soon as possible. However, we also want to make sure that one set of investors is not repaid at the expense of another. | "We want to ensure all investors are treated fairly and repaid as soon as possible. However, we also want to make sure that one set of investors is not repaid at the expense of another. |
| "We still have serious concerns about ReGive's activities as a registered society. Therefore we instructed it to take down its website and reminded the society that it must repay all the investors as soon as possible." | "We still have serious concerns about ReGive's activities as a registered society. Therefore we instructed it to take down its website and reminded the society that it must repay all the investors as soon as possible." |
| Top savings accounts | |
| Coventry BS | |
| Skipton BS | |
| Manchester BS | |
| Powered by MoneySupermarket for the Guardian |