Open Letter to Velocity Trade Toronto Canada
Sunday, November 23, 2014
Good Morning Toronto
If you were running a branch Office in Cape Town South Africa what will you do if you find out about this correspondence between your branch and a customer?
I quote verbatim from the emails, no editing. The language is in Microsoft South African English:
The customer emailed your branch on October 29th 2014:
“Good morning Craig and Keith
I received another one of your silly margin notifications at 18:30 last night; you really have to fix your system to stop this nonsense.
I understand that you are trying to put up a show of compliance with regulations; well, this is not it but have your fun if you wish to.
You must realise that I have investigated every aspect of our contractual obligations and must now inform you of my findings and ask you to attend to first things first.
You did not at any time divulge what you call the Nedbank liquidity provider charges to me and when I started asking questions a few months ago you deftly tried to evade the truth and to this day have not come clean on the matter though I have emailed you for the details.
Open and full disclosure of all aspects is part of your contractual obligations; the fees as I work them out from my account are way out of line. I understand that some other operators also have some charges; also was informed by the FSB that CFD’s are not at this stage regulated and I therefore, assume that you can in theory charge whatever you like; it may be scrutinised by the FSB in terms of their powers vested in the Ombudsman and/or the FSB FAIS regulations and I am now proceeding to ask them to do so..
You are way out of line with the Nedbank Parking Fee. To continue to claim that you are doing it to comply with regulation will be a waste of time. You are running a profiteering racket with/without the knowledge of Nedbank. You know the truth.
I got in touch with Nedbank and let the cat out amongst the pigeons; everybody is hiding behind their desks with no Manager in sight. You advised me in another email last week on another matter that you had “discussed with your management.” I must now respectfully ask that you advise me of the contact particulars of such Velocity management.
I am a patient individual but please don’t abuse that. I am aware that you are young men with long careers ahead of you still and I wish you no harm but I must now advise you to consider my position, on which I recommend as follows for the time being.
1. That you credit my Trading account with the full amount that you debited it with the Nedbank Liquidity Provider fees. I have had no benefit from any liquidity protection and don’t need any.
2. In terms of your breach of contract you don’t deserve the commissions debited to my Trading Account. I ask that you immediately credit to full amount to my trading account.
3. I shall watch the account and hope you will comply before the end of day. You have it all on your system and it is in my view possible for you to do it before lunchtime today.
4. That will enable me to start trading again [with no Nedbank Parking Fess, none whatsoever] and we can proceed to discuss the rest of my affairs.
I have been in touch with the Public Prosecutor and received their advice to commence with an application for legal aid in view of the fact that I am almost financially destitute at this stage. On the other hand I see no reason why we cannot solve the entire matter with common courtesy between us.
You may see an attorney if you wish [that is entirely your choice] but I ask that you at least reveal all including this email to him to advise you.
I expect some acknowledgement of the contents hereof by return email.”
A short response dated October 29th came from your branch:
“I have passed your complaint to my director Dan Carter and Compliance Officer.
They will be in contact with you in due course.
Terminal Velocity – Support”
The customer responded on October 31st
“Good mornijng Craig
Can you ask Dan to do his best to let me have some contact with him today?
It is my first Velocity anniversary; it’s month end and it is Friday. To crown it all I think that there will be some very good buys on the JSE today and I need some money in my trading account to avail myself of the opportunities.”
On November 3rd someone emailed back:
“We note the contents of your email and the requests contained therein.
The complaint has been referred to myself as Key Individual, Daniel Carter as Director and Key Individual of Velocity Trade Financial Services as well as our Compliance Officer Enrique Goosen, and has been carefully considered.
We respectfully decline your requests to reimburse your CFD financing and premium charges on your account. Further, we disagree with your claims and accusations.
As explained over email and over the telephone on different occasions the reasons for our decision are summarised below:
– The terms and conditions accepted when applying for an account with Velocity Trade refer to our website, which you used to submit your application to Velocity Trade, for information about the fees charged for different instruments.
– Further details in relation to any aspect of your account are available through our support desk, which you are familiar with and have made use of on many occasions.
– On request from yourself additional explanatory information has been supplied to you over email in relation to questions posed by yourself on financing and other charges associated with CFDs.
Should you wish to pursue the matter further you may contact the FSB directly or through the FAIS Ombud: http://www.faisombud.co.za/howtocomplain.
The complaint may be pursued within 6 months with the Ombud for Financial Services Providers: http://www.faisombud.co.za/contact.
Tel: +27 (0) 21 200 8803 | Fax +27 (0) 86 249 1005 | Cell +27 (0) 82 524 3707
200 on Main, Claremont, Cape Town, 7708, South Africa | “
All that needs to be added is that the last email is a fabrication of the mind of the writer.
May I ask for your comments, Good Sir[s] or the appropriate Officer dealing with such matters?