MSE News: Treasury rejects currency regulation reform after Crown collapse

A question about : MSE News: Treasury rejects currency regulation reform after Crown collapse

This is the discussion thread for the following MSE News Story:

Treasury rejects currency regulation reform after Crown collapse

Also see:

MSE hires insolvency expert to investigate Crown Currency Exchange

for background, see the original

Crown Currency Exchange fails news story

Best answers:

• hi , just 1 of the many to lose money on crown currency, is there any thing we can do , who do we contact, garry
• I am not a loser in this business failure but I am getting very angry at the most ridiculous releases being made by the authorities on this matter. Whether or not CCE met current rules will be uncovered in time but, what is clear to me, is that the present rule on the regulation disclosure fails the simple test of common sense and, in my opinion, actually only serves to make things worse!
  Any authority that can issue a statement that reads (something like) this company was authorised to be reguated by the FSA but it was not a regulated activity - really needs to wake up and smell the coffee. I am not one for a hand holding nanny state but, please, how stupid does that sound?
  If no regulation is going to exist then any required statement needs to be CLEAR and CONCISE. It ain't rocket science. Even something as simple as 'This company is registered with the FSA for payment services but presently, due to it's nature of trade or size of turnover, requires no protection to be put into place to secure funds in the event of company failure' OR even no comment required at all, but, to have a requirement that says they are regulated for payment services (when that regulation means diddley squat) is misleading to the ordinary man in the street.
• I personally agree with the decision - it was always clear that crown and the like offered currency at well above market rates and sometimes even above the trading rate. People who bought with crown were taking significant risks. Trading in foreign currency classed as very high risk and crown has always been playing a risky game.
  People who bought crown currency did so knowing their reputation but forgetting what was actually involved. CCE was betting your money that the euro rate would improve. See this forex graph: https://www.x-rates.com/d/EUR/GBP/graph120.html Euro during much of this period offered by CCE was 1.235 which the forex never touched.
  It was a risk vs benefit when people buy currency from CCE. Risk being the loss of all your money and the benefit being a much better exchange rate. Maybe you didn't know this... Maybe MSE and crown should have made this clearer but ultimately i think it's the individuals responsibility to do the research.
  I don't think tax payers money should be used on introducing legislation into an area where more money is traded then any market other market in the world. Let alone the difficulties involved in monitoring a massive international market, those who trade on the forex would simply move to take advantage of any UK protection. I am glad the treasury threw this idea out the window without spending much time or money on it.
  I do feel for people who lost money and I am sure this will serve as a warning to all of us for the future.
• Of course our Conservative government won't do anything - after all they must look after their own members.
  Edward James is a main shareholder in Crown Currency Exchange as well as Leader of Mendip Council AND the Leader of Somerset CONSERVATIVES.
  An article will be appearing in the regional press tomorrow on the connection. Mr James is a director along with his sister Susan Margaret Benstead (nee James) and brother in law, Peter Benstead (previously main shareholder of Baltic Pine, Baltic Pine Conservatories, Dream Island TV Productions - all of Hayle, Penzance)
  Ironic that the media have tried to drown this huge story of CCE with news from the Conservative party Conference and yet a main shareholder of CCE is a leader of Somerset CONSERVATIVE Party!!
• As a loser I agree I accepted a certain amount of risk when dealing with such a company. However, before I used Crown I found out that they were registered with the Customs and Excise and more importantly with the FSA which appeared to give the company some legitimacy and protection. I also checked consumer groups and this website all the company in their 'best-buys'.
  I have taken the risk and paid the price but what really galls me know is to read that problems with the company were known over a year ago by the bank, FSA and some of the consumer groups yet we the consumer were told nothing.
  Martin I like and support what you are doing. You are usually up with the hunt but what went wrong this time with the warnings!!!!
• I looked to see if it was FSA backed and saw it was FSA registered so thought that it was OK. If that didn't mean it was covered it should have been made plain to avoid misinterpretation.
• 
  GOVERNMENT ANNOUNCE NO CHANGE TO REGULATIONS FOLLOWING CCE COLLAPSE - SEE why!!!
  
  The government have announced that they will not be making any changes in the regulation of thes type of Companies and it's becoming clear why.
  (previous post now updated and, I warn you, it will make you angrier than ever)
  Peter Benstead - Director: Mayfair and Grant
  (Mining & Metals industry)
  August 2009 — Present (1 year 3 months)
  Gold Bullion Dealers
  John Harvey House
  Foundry Square
  Hayle
  Cornwall
  TR27 4HH
  Quote from Mayfair & Grant Website:
  "Established in 2009, Mayfair and Grant are located in the Old Foundry area of Hayle, Cornwall where we are in the unique position of being able to offer lower prices on investment gold than many of our competitors. Our prices reflect the fact that we operate purely online, and as a consequence our overheads are kept to an absolute minimum and we pass these savings onto our clients.
  We store our gold in a secure facility located off site, and offer the unique opportunity to store any gold you purchase from us in our vaults completely free of charge for the first year".
  Sounds familiar!!
  Grants of Cornwall is a trading name of Mayfair & Grant Ltd. John Harvey House, Foundry Square, Hayle, Cornwall. TR27 4HH
  Matter of curiousity, Mayfair Cellars, a company dealing in wine went bankrupt in 2006. The Administraters of that company were Grant Thornton – even Benstead wouldn’t have the nerve to use part of the administrator’s name for another company – or would he?????
  Katie Benstead from Hayle in Cornwall is a shareholder in TOR FX.
  She operates Med Property Management, a company renting properties in Spain
  Quote from her site:
  ADVERTISE YOUR VILLA OR APARTMENT WITH US FOR FREE, ONLY PAY FOR BOOKINGS!!
  If you would like to rent out your Costa Dorada property during the summer months, and want to increase the number of enquiries, we can help! We will promote your property on various websites apart from this one, advertise in magazines and newspapers, and you only pay for the reservations you receive. You have nothing to lose. If you would like us to manage your property for you, arranging the changeovers, maintenance, visitors bookings, meet and greets, please call Katey on **** ********* or send an email to info@***property**********.com
  She has links on her site for the following:
  Foreign Exchange Experts - TOR FX Wales
  Currency Exchange - Crown Currency Exchange
  Mmmnnn - also sounds familiar 'you have nothing to lose'!
  By the way, Susan Margaret Benstead, a director of CCE was born on 13/04/1945. She gave her majority share in TorFX to her daughter Vicki O'Brien in Aug/Sept 2009.
  Edward James was the chairman of Crown Currency Exchange and Crown Holdings. He was also, until 2009, the chairman of TorFX when he retired on his 70th birthday.
  UPDATE
  Edward James is a main shareholder in Crown Currency Exchange as well as Leader of Mendip Council AND the Leader of Somerset CONSERVATIVES.
  An article will be appearing in the regional press tomorrow on the connection. Mr James is a director along with his sister Susan Margaret Benstead (nee James) and brother in law, Peter Benstead (previously main shareholder of Baltic Pine, Baltic Pine Conservatories, Dream Island TV Productions - all of Hayle, Penzance)
  Ironic that the media have tried to drown this huge story of CCE with news from the Conservative party Conference and yet a main shareholder of CCE is a leader of Somerset CONSERVATIVE Party!!
• Which regional press will the article be in !!
• Having looked at councillor James website it lists him as the chairman of a foreign money exchange company not just a major share holder.
• Found this news article on the BBC website from 2008:
  Crown Currency Exchange/Travel Money Services in Hayle are working together with its parent company TORFX (Penzance) to raise money for Children In Need. Since the middle of October up until the big day for any purchase of currency the company is donating a percentage of all sales towards Children In Need. Call 0800 612 9675 purchase your currency and make a difference to children's lives around the world. Staff are travelling up to Launceston next Friday (dressed in TUTU'S including some very brave men as well) to present a cheque so let's make it as big as possible for Pudsey!
  Seems to be a very clear business link between Crown and TORFX
• It comes as no surprise that they wont change legislation , and no surprise that they knew about this long before ,but instead of doing the morally right thing ,they chose to ignore it . Maybe people should talk with their feet and not vote conservative and any other thing we can to get our point across . The government says there are tough times ahead , but the people who have lost money here know that , and we arent thinking about ourselves we are trying to stop this happening to someone else . I have listened to so many comments from other people but answer me one question . WHAT HAPPENED TO DOING THE RIGHT THING ? . And we wonder why the economys in the mess it is , lets go back to basics like honesty .
• In my opinion the legislation introduced last year has actually done more harm than good. Prior to the introduction of the Payment Services Regulations (which contains the requirement for registration and authorisation) most people understood that this sector was unregulated and transacted with their eyes open. Directing the FSA to oversee these requirements (and issue approval) has given the impression of a greater degree of regulation than actually exists. This might all be blindingly obvious now, but if you conducted a poll and asked what was understood by FSA registration/approval/regulation then most respondents would assume a degree of protection and confidence (which is the point of a regulator after all)
  There certainly should be lobbying for a greater understanding and explanation of the role of the FSA in this area, though unfortunately I feel it will do little to help here.
• I also lost money with Crown Currency ( Due for delivery today! 13th October!!)
  And I too have sent off my loss form, to MCR and had an e-mail reply with " The not much hope" " At least 3 months before we tell you, format"
  However here's a question I would like to ask the forum before I stick my neck out ? Why not write to Mr James at Mendip District Council and ask him if he would return my hard earned pennies, not much hope I know but at least I would be doing something and maybe just maybe cause a little embarrassment, especially if 13500 people did it.......or am I breaking some law I'm unaware of?
  Eddy
• Borderline -
  Martin I like and support what you are doing. You are usually up with the hunt but what went wrong this time with the warnings!!!!
  couldn't agree more, like most i use this site & which for advice when making financial decisions, i also checked with the FSA to find they were registered with them, but they failed to say they didnt regulate them!
  if reports are correct, CCE have been in trouble for some time..........but no-one picked up on it??
  yes martin, find us cheap rail tickets, but when it comes to the crunch????????
• I would like to add one comment based on a post I have seen on MSE website from a Treasury spokesman:
  “Crown Currency Exchange's business model was exceptional – it involved taking forward exchange risks. "It would not be appropriate to crack down on the vast majority of currency exchanges that do not take such risks”.”
  Whilst this may well be the case, there is nothing in place to stop any other “fly by night” starting another company using this same “exceptional” model! Those of us who have lost are also concerned that steps are taken to prevent anyone else finding themselves in the position we are and one of the points we are asking the Treasury and Government to address is that this can NEVER happen again. The bulk of losers appear to be “normal” consumers (i.e. holidaymakers) who assumed they were buying currency by post that was already in place (“Cancelled Contracts”). The CCE website stated the FSA’s name – what the Treasury must be made to appreciate is that in this day of searching the internet for purchases/deals most “normal” consumers would not realise this was an “exceptional” business model with high risks.
  The only analogy I can think to draw is that if you are planning to buy a Ј1,000 TV on line and see one in Comet you like, you are not advised or expected to do in depth research into the company and its directors before you send your Ј1,000. Why then should the Treasury expect that a consumer using Crown Currency should have done this before they sent their Ј1,000 to them after seeing their rates advertised on CCE’s own and price comparison websites? Should not the FSA “kitemark” have afforded the necessary comfort that this was a legitimate and regulated company? Most “normal” consumers buying on line would treat a currency purchase in exactly the same way as they would any other purchase. We are as a nation actively encouraged to go on line for most purchases – including Government departments such as TV Licencing, Road Tax etc. The list is endless of companies trying to get consumers to purchase on line. If situations such as Crown Currency are allowed to continue unregulated how do you expect Joe Public to trust anything else on the internet?
  Anyone in discussion with their MPs should be encouraged to make this point?