MSE Investment recommendations - My Community Bank

grjinflight

A couple of weeks ago I was looking to make an investment and checked a recent Newsletter, where My Community Bank was recommended. I believe the post suggested that there was FSCS cover, so was happy to proceed.

As it happens I was delayed in moving forward and decided to check the FCSC site to make sure they were covered. I found no entry for My Community Bank and when I inputted Modulr, their banking partner, it specifically said they were NOT covered.

Going back to the Newsletter, the recommendation has now disappeared, despite the banks high 0.64% offer. I realise that markets change and that MSE tips are only suggestions and it is up to the investor to satisfy themselves their investment is sound but it worries me that MSE can remove a recommendation without posting an update explanation.

wmb194

"Brent Shrine Credit Union Limited trading as My Community Bank is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (FRN 213245)"

You looked up the wrong company. Not a bank, it's a credit union and it is covered by the FSCS.

Eyeful

Typing FRN 213245, or My Community Bank into the following FSCS checker apprears to suggest the OP is correct. Any suggestions why?
https://www.fscs.org.uk/check-your-money-is-protected/

Eyeful

Typing My Community Bank into the FSCS Financial Services Register, shows there is a clone problem here:
https://register.fca.org.uk/s/search?type=Companies&q=My+Community+Bank+

Typing the FRN 213245 into that register shows this:
https://register.fca.org.uk/s/search?type=Companies&q=+213245

Well done to the OP. Just goes to prove that before you put money into somewhere new, do basic checks on these websites.

https://www.fscs.org.uk/check-your-money-is-protected/

https://register.fca.org.uk/s/

https://www.fca.org.uk/consumers/unauthorised-firms-individuals

TojoRalph

Like the OP, I followed a link via the best deals Newsletter for My Community Bank (aka Brent Shine) and after some initial confusion I got my account approved. What I am now struggling with is the numerous company names/references in the blurb I am receiving, so before I invest, I wondered if anyone can explain.

So far we have My Community Bank, in relation to which I am receiving emails from My Community Finance (a My community Bank partner), which provides a Sort Code of 04-00-72 (MODULR FS LIMITED), and references Amplifi Capital (UK) being a registered trading name of  My Community Finance with an FR No of 718749 and who it states partner with Community Finance Network.

Before I make any form of commitment, I'd appreciate it if anyone can explain the above?  

TojoRalph

TojoRalph said:

Like the OP, I followed a link via the best deals Newsletter for My Community Bank (aka Brent Shine) and after some initial confusion I got my account approved. What I am now struggling with is the numerous company names/references in the blurb I am receiving, so before I invest, I wondered if anyone can explain.

So far we have My Community Bank, in relation to which I am receiving emails from My Community Finance (a My community Bank partner), which provides a Sort Code of 04-00-72 (MODULR FS LIMITED), and references Amplifi Capital (UK) being a registered trading name of  My Community Finance with an FR No of 718749 and who it states partner with Community Finance Network.

Before I make any form of commitment, I'd appreciate it if anyone can explain the above?  

Anyone able to provide feedback? Thanks.

Eyeful

1. First make sure you are not communicating or dealing with the clone of My Community Bank. Look here
https://register.fca.org.uk/s/search?type=Companies&q=My+Community+Bank+

2. Brent Shrine Credit Union (Ref No. 213245) used to be known as My Community Bank.
Money deposited in Brent Shrine Credit Union is protected by FSCS up to £85k
https://www.fscs.org.uk/check-your-money-is-protected/

3. E- Money is not protected by FSCS. Read this 
https://www.fscs.org.uk/news/protection/e-money/

4a. Amplifi Capital (UK) Ltd (Ref No. 718749) & Amplifi Capital UK Ltd (Ref No. 902841) both have the same address and phone number as Brent Shrine Credit Union. So I assume they are closely connected. However if you check the Financial register they are only allowed to do certain types of business. The FSCS will not apply to them. These companies used to be known as My Community Finance.

4b. MODULR FS LIMITED (Ref No. 900573) is on the Financial register. It deals with payment of electronic money. It will not be protected by the FSCS.

https://register.fca.org.uk/s/
 

5. Community Finance Network. I cannot them either on
 https://register.fca.org.uk/s/  or  https://www.fscs.org.uk/check-your-money-is-protected/

So talk to Brent Shrine about this company before dealing with them. 

k12479

I've got a bit of money with them. No problem so far, but I've not tried withdrawing anything.

As I understand it you have:
'My Community Finance', trading name of Amplifi, at the top
Then 'Community Finance Network'
Which is made up of credit unions - 'My Community Bank', trading name of Brent Shrine, and Castle Community Bank in Scotland.

My paperwork, etc is with My Community Bank, i.e. Brent Shrine and the account I transferred money to was a Co-Op account with My Community Bank as the beneficiary.

Modular FS that you mention appears to be a payment processing company, which is slightly eye-brow raising. And are you saying that the sort code references Amplifi Capital (UK)? If yes, then again, a bit eye-brow raising, why not the underlying credit union itself?


This is the blurb from their website which also might help explain the relationship:

My Community Finance is the registered trading name of Amplifi Capital (UK) Ltd [Amplifi] with UK company number 08641995 and registered address 4th Floor, The Emerson Building, Emerson Street, London SE1 9DU. Amplifi Capital (U.K.) is authorised and regulated by the Financial Conduct Authority. FRN 718749. Amplifi is registered with the Information Commissioner’s Office under the Data Protection Act 1998, registration number ZA040320. Amplifi partners with the Community Finance Network; the Community Finance Network is a group of Credit Unions and CDFIs committed to providing fair and ethical loans. Participating Credit Unions are authorised by the Prudential Regulation Authority (Bank of England) and regulated by the Financial Conduct Authority. Participating CDFIs are regulated by the Financial Conduct Authority. Their respective details, including registration numbers with both regulatory bodies, can be found on the Community Finance Network website.

TojoRalph

k12479 said:

I've got a bit of money with them. No problem so far, but I've not tried withdrawing anything.

As I understand it you have:
'My Community Finance', trading name of Amplifi, at the top
Then 'Community Finance Network'
Which is made up of credit unions - 'My Community Bank', trading name of Brent Shrine, and Castle Community Bank in Scotland.

My paperwork, etc is with My Community Bank, i.e. Brent Shrine and the account I transferred money to was a Co-Op account with My Community Bank as the beneficiary.

Modular FS that you mention appears to be a payment processing company, which is slightly eye-brow raising. And are you saying that the sort code references Amplifi Capital (UK)? If yes, then again, a bit eye-brow raising, why not the underlying credit union itself?

The Sort Code provided is 04-00-72 and comes up as MODULR FS LIMITED. The account number to make payment to appears to be the banks own account, aka buying premium bonds, with the requirement being to include a reference number they provided. I assume the reference number is unique to myself and all being well the monies will ultimately be lodged with My Community Bank (where monies are protected when saved). 

Given the above, the fact that the rate at My Community Bank is only marginally better than elsewhere and the info available on the fscs website in relation to all other parties involved, I think I will pass on my plan to open an account with them.  

masonic

It is not unusual for small outfits like credit unions to outsource some services to third party providers. It is always worth checking the status of such intermediaries. Regulated e-Money institutions don't offer FSCS protection, but should be safeguarding money passing through their payment services. You should not hold money with such a provider, but it is fairly low risk to have money pass through one on the way to another account.

I would tend to avoid small credit unions because of their tendency to become insolvent, especially when they have market leading savings products MSE highlights, leaving them unable to lend and generate income on the wall of cash piling in.

Mrs_H_5

My community bank is currently listed as Top credit union account paying 1.01%. I read all T&C which stated FSCS protection, I opened an account which stated that funds are held in a holding account before final transfer to a personal account. Tried to transfer funds in this morning, transfer was red flagged and now my funding account has been blocked! Based on this I am not continuing.