5 year struggle of Secured Energy Bond investor to get his money back

The offer looked good. The opportunity to invest in a project to put solar panels on 22 schools across the country. The return a decent rate of 6.5 per cent over three years.

That was 2013. I first saw the adverts in the Guardian newspaper. I was not a big investor, though looking to put some money into what I saw as environmentally sustainable projects.

SEB appealed to me as a small time investor on a number of levels. As a committed environmentalist I wanted to put some money into something that combatted climate change.

I was also one of the many investors hit by the rapid fall in interest rates and was looking for something that would provide a bit more of a return.

There were risks, this was afterall a mini-bond, which meant the project initiators had not been able to raise the funds from more traditional sources, such as the banks.

However, as an investor, my concerns were satisfied by the presence of Financial Conduct Authority (FCA) regulated Independent Portfolio Managers (IPM). They took on the role of security trustee and corporate director on the bonds. IPM also played a role as approver of the invitation document.

Despite any reservations there might have been, this seemed pretty safe, just so long as all involved did what it said on the tin (or in this case Invitation Document).

The solar panels would be fitted to the schools, so that even if some problems came along there would be those basic assets in place to claim against.

All went along smoothly for the first year, the quarterly interest payments being made.  Trouble began in January 2015, when the fourth interest payment was not made.

I had that queezy feeling the stomach that something was wrong. This grew, as emails to the company remained unanswered and the phone line was dead. A call to Capita, which dealt with interest payments confirmed that they had been suspended. There was a dawning feeling that I had been had, as well as a certain powerlessness.

The problems arose, when a large amount of the funds intended to provide solar panels, was siphoned off by the Australian parent company CBD Energy for other purposes. CBD Energy had been placed into administration in 2014.

SEB was then put into administration, with Grant Thornton appointed administrators.

The first opportunity to meet any of the other 900 odd investors who had similarly put their money in good faith into SEB came at the creditors meeting in April 2015. There was a lot of anger and a decided lack of optimism.

A few of us met afterwards, agreeing to stay in touch – establish an email contact list, so that investors could be kept informed about what was going on. Key members were Frances Goodchild and Fiona Pitkeathly. It was this group that rapidly morphed into the SEB Investors Action Group.

There was media coverage and contact made with MPs. Investors were directed to contact IPM in the first instance, then if their response was not satisfactory to go to the Financial Ombudsman Service (FOS). A number of investors took this route, including myself.

In September, it was doubly irritating to learn that IPM boasting about their role as security trustee. They then took a similar role on bonds like Providence I and II, which also subsequently went into administration.

The initial response of the FOS was favourable, indicating that they were minded to look at the investors case against IPM.

However, this then changed, with the opposite viewpoint adopted. The SEB Investors Action Group contacted more MPs, made representations to the Treasury Select Committee and the FCA.

It was at this point that some investors took on FS Legal to challenge the FOS finding. A barristers opinion was obtained, which helped to get FOS to change its position.

So last year, FOS decided there was a customer relationship between investors and IPM, so they could look at our complaints.

They agreed to look at two test cases. The result was that FOS has now ruled in those cases for the investors and against IPM

The FOS ruled that IPM’s involvement was not only approving the promotion documents but that it ‘had an ongoing role in the investment scheme’ and was ‘central to the security and quality assurance arrangements’ of SEB.

It also ruled that the security that was put in place for the mini-bond was flawed, “leaving the security secured, in effect, on nothing. This was a fundamental flaw and one which IPM should reasonably have spotted.”

At time of writing, the two test case investors have accepted the ruling, so IPM have now been ordered to pay. IPM is no longer an FCA regulated company.

If they fail to pay and cease operating, then investors have to go to the Financial Services Compensation Scheme. More delays but eventually I should see my money back.

It has certainly been a long road to come to this point. I cannot deny that for much of the five years I did not think I would see my money back. Sometimes it seemed things were being drawn out in the hope that investors would just give up and go away. Now, there is an immense feeling of relief, that I will be seeing my money come back.

There are many lessons though to be drawn from the case, not least the effect of collective action. Had that small group of investors not come together after the creditors meeting back in April 2015, I do not believe we would be seeing our money back at all.

There has also been recognition of the need for stronger regulation of this area, largely due to this case.

published - 28/7/2018 - Guardian newspaper -  https://www.theguardian.com/money/2018/jul/28/i-lost-my-cash-in-a-solar-project-but-after-a-five-year-battle-ill-get-it-back

 

Swimming pool is taking shape in Wanstead

Weeks of enduring the hot weather, I cannot be the only person in Wanstead to think wouldn’t it be nice to have somewhere local to go for a swim?

Somewhere that did not involve taking a journey on the stifling tube network. Well, in Wanstead, those prayers are about to be answered, with the arrival of the swimming pool.

Residents are invited on Monday to view at Wanstead library the design proposals for the new pool, leisure facilities and Wanstead High School improvements.

There will be a 12 week consultation period later in the summer for people to comment on the planning application, with work due to start on the facilities later in the year.

I remember when starting at Wanstead High School back in the 1970s, there used to be a small open air pool based on part of what is now the car park for the leisure centre.

Teachers and pupils would go along for a dip or simply to sit by the pool. Unfortunately, this pool was taken away and not replaced.

Local people have been calling for a pool at this end of the borough for many years. Until Labour took over the council in 2014, this call fell on deaf ears. Indeed, swimming pools practically disappeared from the borough under previous Conservative administrations.

Under the present Labour council leadership this policy has been reversed. Swimming pools have been built across the borough, with the Wanstead but the latest recipient.

Swimming is vital, just for survival in life. Put simply if you cannot swim you may drown. Beyond self-preservation, swimming is an excellent exercise, involving many muscle groups and not causing the damage to joints and other parts of the body that other exercise can do.

More people swimming will also mean a fitter, healthier population.  A healthier population will mean less call on NHS services. It is a real win, win.

Bringing the swimming pool plans to fruition was part of the manifesto that I together with Jo Blackman, Daniel Morgan Thomas, Sheila Bain and Paul Merry campaigned on in the local elections last May. All five of us were returned for Wanstead Village and Wanstead Park wards. We are all now very proud to be delivering on this manifesto promise.

So let’s celebrate the start of the creation of our new swimming pool in Wanstead. Long may it prosper. 

 Published - 28/7/2018 -Wanstead and Woodford Guardian - "Fancy a lovely cool pool to plunge into? Here's how you can have your say on it."
http://www.guardian-series.co.uk/news/16382881.have-your-say-on-the-planned-wanstead-swimming-pool/?ref=fbshr

 

 

 

 

Social media can help create a fear of crime

The development over recent years of social media as the place where increasing numbers of people play out their lives has been something to behold.

Social media offers great opportunities to learn as well as connect with a variety of people. It is also a forum whereby it is possible to cut oneself off from the real world surrounded by people who echo your own views.

It can be a force for good or ill. Take one example, the issue of crime. In many local areas, there are now hubs where people exchange information about all sorts of things. It can just be advice, services on offer or what is happening in terms of crime.

There are positives and negatives to these forums. It is good to know what is happening in the local area, especially on issues like crime. As I know from my own experience forewarned can very much be forearmed when it comes to avoiding becoming a victim of crime.

The problem comes when social media helps create hysteria. A crime takes place, that is then hyped up. Vengeance seems to be a popular sentiment expressed, though in most cases this is of little if any value to the victim. The blame game also ensues.

The most worrying aspect of this scenario is that it helps create fear in the community.

When recently canvassing for the local elections, there were some people who were literally cowering behind their doors due to fear of crime outside.

The potential for creating a crime panic on social media also came home when canvassing a local road. A number of people on social media told of how bad crime had got, others in the same road not on social media thought things no worse than usual.

Social media can ofcourse be of value in combatting crime, letting people know what is going on. Then more specifically there can be things like WhatsApp groups whereby people look out for each other in their own roads.

So there are pluses and minuses of social media when it comes to crime. The line is crossed when misrepresentation occurs which creates fear in the community of something that may not even exist.

- published in Wanstead and Woodford Guardian 9/8/2018 - "Social media can leave us afraid to go out"

Power of the community in Wanstead is second to none

It was fantastic to see a bench recently vandalised on Christchurch Green repaired, so that people in our community can once again enjoy resting there.

The repair resulted from the intervention of a local lady, who spoke to some builders working nearby. They generously fixed the bench without charge. A real case of community action and putting something back.

It is this type of community spirit that is so important in our often anonymous and sometimes seemingly uncaring society. This action was Wanstead at its best.

There are so many people that quietely contribute to the common good of life in Wanstead. The guerrilla gardeners who tend and create flower beds. The new Wild Wanstead initiative, which has planted tree pits in so many of our roads. The sea of colour expected is beginning to emerge, though slightly delayed due to the dry weather.

There are those helping out neighbours by picking up some shopping for them.

Much voluntary work goes on in Wanstead Park. There is a relative army of litter pickers who go around the park ensuring that rubbish is removed.

Members of the Wren group do other restoration work in the park.

Litter picking extends well beyond the park, with activities taking place on Christchurch Green, George Green and around the Tarzy Wood area.

These are all actions taken by individuals coming together in community to make our area a better place.

There is more that can be done though, especially on litter. It never fails to amaze me, how human beings will just drop rubbish around them and move off. I am not sure there is any other creature in the animal kingdom that behaves in such a way. Dirtying once own pitch as it were?

If those who drop rubbish in Wanstead Park, Christchurch and George Green, Tarzy Wood and elsewhere just took the stuff home and disposed of it through the correct channels, a lot of effort would be saved. It is really just a case of taking responsibility for ourselves and community.

But enough of the negative. The voluntary efforts of so many people in Wanstead should be recognised and applauded because it is they who make this such a lovely place to live.

*published - 19/7/2018 - Wanstead & Woodford Guardian - "Power of the community in Wanstead is second to none"

 

London Underground addressing the screech on the Central Line between Wanstead and Leytonstone but no air conditioning for 10 years

Central line users who have had to put up with the high pitched screech on the line between Leytonstone and Wanstead should soon get some relief.

Addressing the External Scrutiny Committee of Redbridge Council, Chris Taggart, head of line operations at the Central Line, explained how London Underground did some track fixing to alleviate the vibration that some residents had been enduring in their homes. “This created the screeching noise and we have been working hard to find a solution,” said Taggart.

The solution appears to be fixing pads alongside the track fixings, which takes away some of the noise. This approach has been used at Bethnal Green to good effect and will be used on the Wanstead stretch of the track.

Taggart also addressed the poor service on the Central line over the past six weeks. “The last six weeks has not been good on the Central Line, not as good as normally expected,” said Taggart, who explained there has been an overhaul of the trains going on, which has meant taking some trains out of service

The head of line operations conceded that the Central Line gets hot in the summer. He then outlined some of the measures that have been taken to alleviate the suffering of passengers, such as the fitting of a white film on the roof.  However, there will not be air conditioning on the trains till 2028.

On the question of reliability, he promised things would improve but this could take 18 months plus.

The Central Line operates 85 trains at present on its tracks, with plans to increase to 100. It runs 34 trains an hour.   

My mugging ordeal is wake up call to protect our open spaces

Christchurch Green in Wanstead has a mixture of memories for me. I walk across there all the time. At this time of year it is a beautiful place to be. Sun shining people out exercising, children in the playground area and sun bathers. A balmy evening walk through the tree lined paths to the high street is another pleasure.

However, the tree lined paths hold other less pleasant memories like the one when I was heading over to the high street to get a bit of shopping and a guy stepped out from behind a tree and asked for my wallet. I pushed him aside, then another came and another. I managed to get past all three and attempted to run to the high street but the gang were well organised – eight in total. As I made the attempted run to the other side, a shout came from behind to “trip him.” I was duly tripped by another guy sliding in across me.

There was then a frenzied attack, kicks and I later found out a knife round the back. They got the wallet eventually, whilst I made it to the high street, when the police were called. They came quickly, taking me round the streets to see if we could spot the attackers.Unfortunately, they’d gone.

I eventually recovered from the attack, though the  psychological effects were far worse that the physical.For a long time going out was a bit traumatic, you tended to think everyone was a threat. This all happened back in 2001.

There has always been crime in this area. Cutting the police does not help confront it. One of the plus points that came out of my attack was the campaign to save Wanstead Police station. This was achieved for a number of years but was closed a few years ago.

So yes there are things we can do to confront crime. One important thing that came from my attack was a determination not to be intimidated. The psychological effects immediately after the attack meant I didn’t like walking on the streets. But a couple of months later I was due to go up to South Woodford to see a friend. It was then I decided enough was enough, I wasn;t going to let those who had mugged me reduce my freedom of movement. I walked and there were no problems.

I tell the story because there are many threats to our open spaces and community. It is vital that people come together as community to confront those threats. So we should not let those who try to destroy our community to succeed. The mass of people who enjoy spaces like Christchurch Green need to make sure it remains an area for the people to use, not somewhere where people maybe concerned to go at night. A place where daybreak reveals vandalised benches and other things. Many of those doing this sort of damage live in our area, they are part of our communities. They don’t all come in from other parts of London to the promised land that is Wanstead. We need to stand together to stop such attacks on our precious public spaces. Without them we will be a far poorer community.

 *published - "Don't let fear stop us using parks" - Wanstead & Woodford Guardian - 5/7/2018

http://www.guardian-series.co.uk/news/16338997.paul-donovan-dont-let-crime-become-a-threat-to-public-spaces/?ref=fbshr
 

Private investors set to get back millions, following historic Financial Ombudsman ruling in Secured Energy Bonds mis-selling case

A ruling from the Financial Ombudsman (FO) has seen the claims of investors, who put millions into a mini-bond funding a solar panel project, upheld.

The investors had complained about Independent Portfolio Managers (IPM) role in promoting and arranging investments in the £7.37 million Secured Energy Bond (SEB).  

After struggling with the FO for nearly three years, SEB investors have been told that two of their complaints have been upheld. It is expected that those in similar circumstances are also likely to have their complaints upheld, as FO have described these two complaints as “sample cases”.

The Secured Energy Bond was launched back in 2013, with IPM appointed to look out for the interests of the 973 investors, who put £7.37 million into the product for three years at a promised rate of 6.5%.

IPM had three roles:          

*the approver of the Invitation Document, 

*Security Trustee  

*Corporate Director. (cf. attached background collapse of SEB Bonds for details)

The bonds were intended to fund solar panel installations on 22 schools across the country.  

The problems arose, when a large amount of the funds intended to provide solar panels, was instead siphoned off by the Australian parent company CBD Energy for other purposes.

SEB went into administration early in 2015 and its parent CBD Energy had been placed into administration in 2014. Blue Energy plc took over some of CBD Energy’s assets but not their liabilities, thereby cutting off all SEB claims.

The first that investors’ became aware of the problems was at the end of January 2015 when an interest payment was not made.

The FO ruled that IPM’s involvement was not only approving the promotion documents but that IPM ‘had an ongoing role in the investment scheme’ and was ‘central to the security and quality assurance arrangements’ of SEB.

Notably, the FO has restricted its ruling to issues around the bond at launch, which portrayed the product as safe and secure, and not the subsequent role of IPM, when SEB went bust. 

The FO ruled that the security that was put in place for the mini-bond was flawed, “leaving the security secured, in effect, on nothing. This was a fundamental flaw and one which IPM should reasonably have spotted.“

The investors formed a campaign group, the SEB Investors Action Group, which has been raising the case with the FCA, the FOS, the Treasury, Treasury Select Committee and 100s of  MPs. 

The final decision, follows a roller coaster ride, with investors directed by the FCA to the FO. At first, the FO indicated it could look at the investors case against IPM, then produced an opposite view.

Investors then felt compelled to obtain a barrister’s opinion, with the assistance of FS Legal, to support their complaints. This resulted in FO ruling that they had jurisdiction to consider complaints in January 2017. This decision has now been finalised and complaints upheld against IPM on the grounds of both jurisdiction and merits.

FO should treat all SEB complaints of a similar nature the same. It is estimated that only just over 500 of 937 investors have complained to FO. All investors now have a good chance of getting most of their money back through FO.

It has been a long battle but worth it in the end. Investors would like to thank the FOS for their painstaking and thorough approach to the case. Also, the many MPs who offered support.

This ruling is also testament to what can be achieved when people come together to demand justice. Without the formation of the SEB Investors Action Group, none of this would have been achieved. Most media and commentators wrote off any chance of investors seeing a penny back. It was only the determined efforts of a relatively small number over three years that has led to the result we see today. It is a real result for people power.

*see Telegraph - "Failed mini-bond investors win case against regulated firm that helped sell them"  -  https://www.telegraph.co.uk/investing/bonds/failed-mini-bond-investors-win-case-against-regulated-firm-helped/

FT - "Ruling offers hope for victims of mini-bond failure" - 7/7/2018

This is money - "Victory for investors three years after £7.5 m mini-bond collapse, as Ombudsman upholds complaints against Secured Energy Bonds firm" - see:www.thisismoney.co.uk/money/investing/article-5917139/SEB-mini-bond:investors-victory-three-years-7.5m:collapse.html