Money Concepts FAQ

Q: I have received a letter confirming I am getting compensation and specifying an amount. Is that amount after litigation costs?

A: Yes. The amount stated is your letter is the amount you will receive (i.e. after all lawsuit and administrator related costs have been paid).

Q: How were the minimum compensation amounts calculated?

A: The minimum compensation calculation amounts are a conservative estimate of what you can expect to receive if the settlement is approved by the Court. The amounts were calculated in accordance with the terms of the Settlement Agreement. You should review the Settlement Agreement here to better understand how that was calculated, but, for illustration purposes below is an example of how the calculations were made:

STEP 1 – Calculate the Claimant’s Unadjusted Claim Amount

The defendant’s database was used to determine the amount of losses suffered by the claimant–the losses being the calculated estimated amount of interest paid up until the crystallization date plus any losses (or less any gains) on the leveraged investments.

Specifically, these losses are calculated in accordance with the Settlement Agreement, as follows: Calculate the Claimant’s Unadjusted Claim Amount = Claimant’s Total Estimated Interest Paid plus the Claimant’s Total Estimated Net Leveraged Investment Loss (Gain). The Claimant’s Total Estimated Interest Paid is defined as the estimated amount of interest paid on verified loan amounts up until the class member’s funds were transferred out of Investia’s control or the date of the branch’s closure, whichever was earlier. The Claimant’s Total Estimated Net Leveraged Investment Loss (Gain) is defined as the estimated amount lost or gained on class member’s verified leveraged investments up until the class member’s funds were transferred out of Investia’s control or the date of the branch’s closure, whichever was earlier.

STEP 2 – Calculate the Claimant’s Unadjusted Claim Total Amount

Adjust the losses to address loan data and losses not necessarily in the defendant’s database (by topping up the claimant’s losses by 15% where they qualify for the top up).

Specifically, in accordance with the Settlement Agreement, calculate theClaimant’s Unadjusted Claim Total Amount which equals the Claimant’s Unadjusted Claim Amount plus any Validated Unidentified Loan Top up. If someone indicated on their claim form and attached documents to establish that they had loans (like Manulife loans for segregated investments) or had used a home equity line of credit , then a 15% top up (of the Claimant’s Unadjusted Claim Amount) was applied for “Validated Unidentified Loans” and added to the Claimant’s Unadjusted Claim Amount.

STEP 3 – Calculate the Claimant’s Compensation

Determine the Claimant’s Compensation by multiplying the Claimant’s Unadjusted Claim Total Amount (calculated in Step 2) by the Resolution Adjustment Factor. The Resolution Adjustment factor is simply the percentage of losses recoverable by claimants from the settlement having regard to the amount of the settlement and the total amount of valid claims.

Specifically, in accordance with the Settlement Agreement, the Resolution Adjustment Factor (the pro-rata share) is calculated by taking into account all eligible Claimant’s Unadjusted Claim Totals and dividing it by the total amount of settlement funds available.

For the purpose of the minimum calculations a Resolution Adjustment Factor of 20% has been used. The final Resolution Adjustment Factor may increase slightly once issues relating to the inclusion of a few potential class members in the settlement are resolved.

EXAMPLE: Hypothetical amounts used

Step 1 – Calculation of Unadjusted Claim Amount
Total Estimated Interest Paid of $25,000
PLUS
Net leveraged investment loss of $5,000
=Estimated Losses of $30,000.

Step 2 – Calculation of Unadjusted Claim TOTAL Amount
Unadjusted Claim Amount of $30,000
PLUS
Validated Unidentified Loan Top Up of 15% ($4,500)
=Total estimated losses of $34,500

Step 3 – Calculation of Minimum Compensation
Calculation of Unadjusted Claim TOTAL Amount
multiplied by
The Recovery Adjustment Factor (the pro-rata recovery factor, calculated at 20% for the purposes of minimum calculations):
=$6,900 ($34,500 x 20%)
Q: What kind of proof should I attach to the Claim Form to confirm I have loans from segregated funds?

A: Those claiming to have loans in relation to segregated funds should attach to their completed Claim Forms any documents you have that will help verify you had such loans, often loans with Manulife. Examples of such documents may include documents from Manulife confirming these loans or information from the Money Concept worksheets that they often gave to clients that show loans from Manulife or loans for other segregated investments. You are required to attach your proof using the documents you have in your possession or to take steps to obtain any such documents (regardless of whether you may have previously sent documents to Doucet McBride or to Thomson Rogers).
Q: What do I do if some or all of my accounts are in my name and my spouse’s name?

A: If some of your accounts are jointly held with a family member, please make sure the Claim Form is signed by both of you. So long as both of your names and signatures are on the Claim Form the Administrator will consider all accounts held by either of you, or both of you.
Q: What about compensation for the other products I was sold by the Defendants?

A: The settlement does not separately compensate you for amounts spent on other products sold to you by defendants, except in so much as those costs may have been paid directly out of your leveraged investment portfolio (and hence reflected in a calculation of your leveraged losses/gains).
Q: Will I receive more information about the settlement?

A: Please monitor this website for more information. Everything will be posted here.

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At the age of 43, Danny McCoy was rendered a paraplegic after he was involved in an unfortunate car accident. Prior to the accident, he was an avid sailor. After the accident, Danny became one of the top ranked competitive sailors in the world.

- Craig Brown
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