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Jitters over alternative investment schemes spread to World Wise
DENNISE WILLIAMS, Observer staff reporter [email protected]
Thursday, January 03, 2008
JITTERS over the uncertainty of alternative investment schemes, following a 'cease and desist' order against Cash Plus last week, spread to forex exchange trading entity World Wise Partners yesterday.
Obviously worried investors pressed for information from World Wise staff, wanting to be assured after Financial Services Commission (FSC) troubles with Cash Plus, Olint and Lewfam.
Outside the World Wise offices on Ruthven Road in Kingston, traffic came to a standstill while inside it was standing room only, with investors showing impatience to get answers.
"I did come to withdraw money, but I thought that since they are a foreign exchange trading firm, it would be okay," said one man with whom the Observer spoke. "I asked them if they were in the process of registering with the Financial Services Commission and they said 'yes'. And I was told by a manager that if they were issued with a cease-and-desist order by the FSC, like Cash Plus, the worst-case scenario would be that everybody would get back their money."
Another man who said he was a United States-based Jamaican said his purpose at the office was to deposit money despite the uncertainty. "I considered that Olint is still able to provide returns to their clients so I felt comfortable."
A third investor insisted that he was not pulling out his money because "the little rate that the (traditional) bank is paying is just not enough".
However, two women who also spoke with the Observer said that they were part of the crowd because they wanted to query what was happening with the company.
"I haven't made up my mind yet, so I am here to ask questions," one of the women said. "I am here to find out why my money was not put into my account as promised but I am not nervous."
A World Wise employee, who was giving information to concerned clients in the line, said that the swell of people was due to the long Christmas holiday.
"We were closed on December 21, 2007 and this is our first day of business," the employee said.
Last Monday, the FSC, the island's securities regulator, won its court case against foreign exchange trading firms Olint and Lewfam. The Court decreed that both firms were in fact dealing in securities and must register with the FSC. Olint is appealing the matter.
Four days after the ruling, the FSC followed up a cease and desist order on high-yield firm Cash Plus. Subsequently, Cash Plus boss Carlos Hill asked clients to refrain from withdrawing funds for the next three months, appealing to them to consider converting loans to preference shares, to facilitate his proposed transition to a conglomerate of companies as against a financial entity.
An Observer check at Cash Plus offices at the Courtleigh Corporate Centre on St Lucia Avenue in Kingston saw persons wishing to deposit money into Cash Plus, despite the cease-and-desist order. They were, however, turned away.
One person who was exiting the Cash Plus office, told the news team: "Cash Plus is not taking money because of the government."
DENNISE WILLIAMS, Observer staff reporter [email protected]
Thursday, January 03, 2008
JITTERS over the uncertainty of alternative investment schemes, following a 'cease and desist' order against Cash Plus last week, spread to forex exchange trading entity World Wise Partners yesterday.
Obviously worried investors pressed for information from World Wise staff, wanting to be assured after Financial Services Commission (FSC) troubles with Cash Plus, Olint and Lewfam.
Outside the World Wise offices on Ruthven Road in Kingston, traffic came to a standstill while inside it was standing room only, with investors showing impatience to get answers.
"I did come to withdraw money, but I thought that since they are a foreign exchange trading firm, it would be okay," said one man with whom the Observer spoke. "I asked them if they were in the process of registering with the Financial Services Commission and they said 'yes'. And I was told by a manager that if they were issued with a cease-and-desist order by the FSC, like Cash Plus, the worst-case scenario would be that everybody would get back their money."
Another man who said he was a United States-based Jamaican said his purpose at the office was to deposit money despite the uncertainty. "I considered that Olint is still able to provide returns to their clients so I felt comfortable."
A third investor insisted that he was not pulling out his money because "the little rate that the (traditional) bank is paying is just not enough".
However, two women who also spoke with the Observer said that they were part of the crowd because they wanted to query what was happening with the company.
"I haven't made up my mind yet, so I am here to ask questions," one of the women said. "I am here to find out why my money was not put into my account as promised but I am not nervous."
A World Wise employee, who was giving information to concerned clients in the line, said that the swell of people was due to the long Christmas holiday.
"We were closed on December 21, 2007 and this is our first day of business," the employee said.
Last Monday, the FSC, the island's securities regulator, won its court case against foreign exchange trading firms Olint and Lewfam. The Court decreed that both firms were in fact dealing in securities and must register with the FSC. Olint is appealing the matter.
Four days after the ruling, the FSC followed up a cease and desist order on high-yield firm Cash Plus. Subsequently, Cash Plus boss Carlos Hill asked clients to refrain from withdrawing funds for the next three months, appealing to them to consider converting loans to preference shares, to facilitate his proposed transition to a conglomerate of companies as against a financial entity.
An Observer check at Cash Plus offices at the Courtleigh Corporate Centre on St Lucia Avenue in Kingston saw persons wishing to deposit money into Cash Plus, despite the cease-and-desist order. They were, however, turned away.
One person who was exiting the Cash Plus office, told the news team: "Cash Plus is not taking money because of the government."