BHI Ponzi: Global & Local calls Investec “unfair”

By Chris Steyn

Global and Local, the investment advisory firm linked to the BHI Ponzi scheme that has lost investors billions, is not happy with Investec bank.

It has accused the banking giant of being “wholly unfair” in the way it is handling their mutual clients.

This after the bank informed clients in an official letter on 9 November 2023 that it was terminating its relationship with Global and Local.

Responding to the bank’s move, Global and Local wrote a letter to clients, stating: “We are aware of the email that was sent out regarding the termination of accounts from Investec Bank.

“Please note that this was sent out at very short notice, and we were not able to notify you beforehand of the situation.

“We have had a contractual dispute with Investec Bank which has resulted in the sudden one-sided decision.

“It is wholly unfair to you, as our valued mutual client, to be handled in this fashion.”

In its letter Investec had stated: “In terms of the termination notification sent to the Intermediary, Investec has given the Intermediary 90 days’ notice to close all Corporate Cash Manager (“CCM”) accounts introduced by the Intermediary.”

The bank further informed clients: “We hereby provide you with written notification and regret to inform you that your CCM account will be closed  in 90 days from the date hereof…

“Furthermore, for the avoidance of doubt, from the date hereof…the Intermediary shall not be entitled to enter into new Transactions from your CCM account.”

The letter from Investec continued: “Kindly instruct the Intermediary to transfer the full credit balance in your CCM account into your primary bank account or a nominated account held in your name with immediate effect and by no later than the 90th (ninetieth) day from the date hereof (the “Notice Period”). 

“Please note that Investec shall prohibit any payments from your CCM account to third parties. Upon expiry of the Notice Period and in the event that the Intermediary has failed to transfer the credit balance out of any of your CCM accounts, Investec will suspend the relevant CCM account/s and any credit balance due to you shall only be claimable (in full) by you subject to due diligence processes by Investec.”

It its letter Global and Local proposes a “solution” to clients that would involve transferring their money to a new CCM account with “one of our long-standing and trusted services providers”.

As for those investors who do want their money transferred from their CCM accounts to their own accounts, it notes: “If you have already sent a request to transfer funds from your CCM account, please be advised that our team is attending to it.  Due to the large volume of emails we are receiving, we will endeavour to attend to all timeously.”

* Read the Global & Local letter in full here:

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