Cater Allen - FPS finally introduced but it will take 2 days!

NFH

krisdorey wrote: »

2pm cutoff for GBP/EUR is considered acceptable, 4pm for USD. A lot of banks who internally manage their positions (i.e. they sell off/hedge their currency positions to as close to zero each day as possible) would have roughly this timing.

I work in wholesale FX so I'm very familiar with what you're saying. However, on a retail level, 2pm is not "towards the end of a business day" and it therefore breaches the regulation.

DevCoder

Then theres a whole bunch of banks breaching the regulation

[Deleted User]

NFH wrote: »

In that case, can you suggest a better account for a small business with no cash transactions? FPS was the only missing piece and it will still be partially missing.

HSBC Business Direct. No monthly fee.

agrinnall

krisdorey wrote: »

Then theres a whole bunch of banks breaching the regulation

Which ones? I'd agree with NFH's view that 2pm is not in accordance with the regulation (although whoever wrote the regulation must have been an idiot not to specify a precise time).

NFH

agrinnall wrote: »

whoever wrote the regulation must have been an idiot not to specify a precise time

I believe the wording was copied from the Payment Services Directive. Because the directive applies to all EU countries, it would be impractical to specify a different time for each country. Also the banking day has become longer and longer over the years. The end of the day used to be 15:30 but is now often 18:00 or 18:30 depending on the bank. Therefore the legislation has to be future-proof.

DevCoder

agrinnall wrote: »

Which ones? I'd agree with NFH's view that 2pm is not in accordance with the regulation (although whoever wrote the regulation must have been an idiot not to specify a precise time).

A good deal of the non retail banks still stick to the 2pm/4pm, Deutsche, KB, SC, SB, SocGen etc

I know one banks Geneva branch which has a 9am GBP cutoff.

NFH

krisdorey wrote: »

A good deal of the non retail banks still stick to the 2pm/4pm, Deutsche, KB, SC, SB, SocGen etc

I know one banks Geneva branch which has a 9am GBP cutoff.

I think you're talking about overnight FX and money market trades. That's not what we're talking about here at all.

DevCoder

im talking about entities which havent completely fully adopted the FPS, so they rely on a third party that handles FPS on their behalf.

Where a third party is involved then the overhead involved means transaction times are cut down.

Non retail banks like I mentioned are struggling to implement FPS as well as the new CHAPS (where you really need to be a full member as opposed to using a full member as a handler).

And they are miles off SEPA

pinkdalek

There's quite a clear trend and solution to all of this.

Bank with a proper bank and not one that pretends to be a bank, offers you so called fantastic products through rose tinited spectacles but cannot get the basics done.

Carter Allen, I mean it is just so local, there are 100s of branches you can call in on if problems arise.

RBS Group/Lloyds Group/Barclays/HSBC - can offer the services you need, when things go wrong they are the 1st to own up and apologise and compensate. They've been there and worn the T-shirt, wake up and smell the coffee!! They may not be perfect by no means but they can give you the FPS that you so blatently require.

DevCoder

So youre saying that non retail banks are not proper banks?

I'd argue that with impending Basle 3 requirements that these non proper banks are actually the opposite to what you state.

FPS is not the be all and end all, if you want FPS then go with a retail bank , if you want wealth management then go with a WM bank and if you want corporate investment then go with a corporate investment bank.

Most UK non retail banks offer WM planning and CI banking but lack the retail banking for the UK (although they offer it to most of the EU bizarrely)