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Me too, into my FirstDirect ISA where they shouldn't have gone as DCUs have been switched, by them, to my Sharedealing account. SIGH!
Have finally received the funds this morning
Have Prax given a performance update of the well recently ?
I spoke to FirstDirect, part of HSBC, about this payment. They say they are aware and are chasing this actively. They also said that some banks pay out on the due date but they wait till they've received it. Very canny.
Brightsideoflife
In that case there is no doubt that you are entitled to the DCU payment. Speak to HSBC again and ask them to comfirm you are entitled and when you will receive payment. If they cannot give a satisfactory answer raise the matter as a formal complaint. You need to make a formal complaint so you can take it to the regulator should that become necessary. You might also ask HSBC if they intend to resolve the issue that has delayed payment so that it does not happen next time.
The shares were purchased when it was Hur from 2 years ago, I received the 1st dcu 2nd October with no issues - it's all very frustrating to have to keep chasing this up
If Mayflower has no luck tomorrow then you could bump the issue up to customer complaints and ask them to resolve with the corporate actions team, or similar. If the DCUs were still listed in an account in your name with HSBC on 31st December then you are legally entitled to receive that payment, on or as soon as reasonably possible after the 28th March.
Are these pre existing dcu or ones you have purchased separately say through jp jenkins
Yes I think your right that HSBC may receive as a total payment because I phoned computershare who have no record for me personally, the thing that worried me from HSBC on the chat, they said there are no further distribution coming through them
The irony being that HSBC are the bank that Prax use for the $/Ā£ FX on their payments...
I think the contact details for Computershare are in the FAQ section on Prax website.
Iām still awaiting a response from HSBC will chase tomorrow
That sounds like a cop out by them. If you have Class II DCUs in exchange for previously held Hurricane shares, and if you received the payment in Sept/Oct okay, and if those same DCUs are still listed on your account, then HSBC should still have received this payment direct from Computershare (Prax' Registrar) to distribute to you. If they didn't then that's a matter between HSBC and Computershare.
All Prax will do is pay over to Computershare the grand total to be distributed to all DCU holders on their Register so speaking directly to them is unlikely to resolve it. If HSBC are unwilling to help then try contacting Computershare, although they may just hold a total nominee value per broker and not necessarily have you listed by name?
It looks like IG and Barclays were also caught napping and had to rush out a reconciliation to pay holders late so would not be surprised if HSBC also do find they have the money and just haven't dealt with it yet.
Anybody else still having issues receiving payment through HSBC, they are advising me that I need to speak to Prax directly?
I didn't have to activate my account. It let me withdraw the funds without any other issues
Sharvey - did you have to activate your fund and share account before you withdrew funds?
Yes, harvey, same here. need leave Ā£50 in account or wont allow one to proceed. only way to get all funds out is to sell all dcus, then you can withdraw all funds to zero balance
My issue with my HL F&S account was that when I tried to extract all of the DCU payment HL informed me that they would close my account if I didn't leave a minimum amount in the account. Not wanting to run the risk that I may lose the DCU holding in the account I had to leave some cash in it.
My 'Fund & Share' account exists only because HL instigated it to hold DCUs. It has never seen any other activity. Yesterday I withdrew DCU funds from it trouble-free.
2 friends today reported to me that when they tried similar via the 'Withdraw Funds' tab, they were met with a 'Technical Issue' message which prevented them continuing. Explanation when they phone HL was that account was deemed 'inactive' until they agreed account terms and conditions declaration read to them by phone. They listened, agreed, the HL agent pressed a button at HL HQ, and immediately the 'Withdraw Funds' tab worked and they withdrew funds.
HL could provide no explanation as to i) how this was not required on my (and presumably others' accounts ii) how HL set up these accounts prior to terms and conditions declaration being agreed iii) why HL did not message HUR-holding clients informing them account could not be used (ie funds withdrawn) until and unless client rang HL to expedite declaration requirements.
So if anyone meets this issue, above is the solution - phone HL telling them account inactive can they read the declaration blurb out so can be agreed and account activated. Typical HL incompetence. Imagine needing to withdraw urgent funds over a weekend when HL shut and being unable to do so till Monday earliest cos HL can't be as sed to inform via message centre. If any HL client tries to withdraw DCU funds please advise forum what happened.
Corry - hadn't spotted that. when have time will see if can find uk relevant article now know what am looking for
I'd be lost without the main posters on this group and LSE kindly allowing it to continue.
Thank you all for your time in keeping us less frequent ex HUR investors up to date.
Senseman - same for HL - it looks to me like they are just trying to find a home for it in their menus that maybe doesn't quite fit the actual nature of the payments.
The investopedia article you link to is specific to the USA. The "Return of Capital" mentioned at the bottom of that Barclay's notification again just looks like an unedited hang over from the template they have used and not relevant to the actual payment?
"Investors who held shares on 28 December 2023 are entitled to receive this dividend ..."
You don't hold any "shares" in anything anymore and you are not entitled to a dividend from Prax.
That statement further supports my view that they are using an incorrect automated notification template that has not been properly reviewed.
Oh wow, I canāt believe they issued that! At least they got the Record date and Announcement date correct.
The payment is deferred consideration for the purchase of your Hurricane shares. The clue is in the name ā DCU ā Deferred Consideration Unit. Prax clearly refer to it as a āDeferred Payment per DCUā on the statements they issue on their website ā the word dividend does not appear anywhere on those statements.
They mention an Ex date (whatever that is) of 29/12 which is the same as the Record date ā if it was a dividend (itās not) then the ExDiv date would be the day before the Record date!
āEffective dateā of 04/04/24 - I have no idea what that even means? Was that the date they decided to pay you? The payment date was 28/3, as required by the scheme Deed Poll, and some brokers credited accounts that day and cheques received by holders of paper certificates were dated and received that day.
No idea why they are quoting the payment to a zillion decimal places. That would be a very exact value you might get by dividing the total sum to be distributed by the number of DCUs in issue. The official Payment Calculation statement issued by Prax, and every other broker issued notification I know of, only quote the rounded value of Ā£0.00617.
I looks to me like they are maybe trying to warp the payment details into a computer generated notification that is not fit for that purpose and has not been reviewed and edited by anyone who has actually read the scheme documents, e.g. perhaps someone in their legal team (not their corporate actions team).
All in my opinion of course, and I could be wrong, but then I have read the scheme docs in some detail, which anyone else can do as well. As I said before you could ask them for evidence (from Prax/Computershare), but thatās obviously up to you how far down the rabbit hole you want to goā¦
If you are with HL look under 'transaction history and you will see both DCI payments are described as 'Return OF Capital'
(note, not Return ON Capital'
Google 'investopaedia return of capital. look for 6th or 7th link down for 'Return Of Capital (ROC) - What It Is And How It Works'. It states that ROC is classed as return of funds originally invested and is NOT taxable. Link & excerpt below
https://www.investopedia.com/terms/r/returnofcapital.asp
'What Is Return of Capital (ROC)?
Return of capital (ROC) is a payment that an investor receives as a portion of their original investment and that is not considered income or capital gains from the investment. Note that a return of capital reduces an investor's adjusted cost basis. Once the stock's adjusted cost basis has been reduced to zero, any subsequent return will be taxable as a capital gain.
KEY TAKEAWAYS
Return of capital (ROC) is a payment, or return, received from an investment that is not considered a taxable event and is not taxed as income.
Capital is returned, for example, on retirement accounts and permanent life insurance policies; regular investment accounts return gains first.
Investments are composed of a principal that should generate a return; this amount is the cost basis. Return of capital is the return of the principal only, and it is not any gain or any loss as a result of the investment'
Thanks for your comments. Sounds like the hope for the 2nd DCU payment to got he way of the first and in to my ISA is a foolish one. PI lose again.
Below is copied directly from Barclays smart invester, corporate action section.
When I spoke to them they said they only treat it the way they have been told by Prax
Key dates
Respond byN/A
Record date29/12/2023
Announcement date28/03/2024
Ex date29/12/2023
Effective date04/04/2024
Event details
Prax Exploration & Production Deferred Consideration Units (PRAXD.XLON.GB) has declared a GBP 0.006169731 per share Return of Capital. Investors who held shares on 28 December 2023 are entitled to receive this dividend and it is expected to be paid on 4 April 2024.