Is KSE Shares are valid for Maintenance Funds? (Tier1)

[shaizi]

hi, I am from pakistan and I have some investment in Karachi Stock Exchange from last 5 months. There is a point in Tier 1 guide notes that anyone can provide a letter from Financial Institute for the maintenance funds.
I want to know, is stock exchange shares are valid proof for maintenance fund?

I have to apply under tier1. Kindly give me your feedback.

[CoolestGuyC]

I want to know, is stock exchange shares are valid proof for maintenance fund?

No, they are not valid.

[shaizi]

But in guidelines, they have listed a point that
"Letter from a financial institution confirming funds".

Can you describe this statement? I think stock exchange is a financial institute.

[niw2]

When you read "financial institution", think "bank".

[rajesh9pl]

Stock prices are not stable and no one can gurantee their value after a day - prices may fall or rise. Hence, you can not use it.

The requirement Funds Maintenance means, how much liquid (read cash in bank) money do you have in hand to support yourself and your dependents when you will be initally in UK.

[shaizi]

Stock prices are not stable and no one can gurantee their value after a day - prices may fall or rise. Hence, you can not use it.

The requirement Funds Maintenance means, how much liquid (read cash in bank) money do you have in hand to support yourself and your dependents when you will be initally in UK.

I agree with your point but it can be verified by my Stockbroker that my shares value doesn't fall below the £2800 amount. I've checked the status of my shares and I am confirmed that in last 3 months it doesn't below the required amount (£2800) at any time.

Also, my Stockbroker says that stock exchanges are considered as Financial Institutions worldwide.

I want to just confirm that "is stock exchange shares are valid if the value of the shares doesn't fall below £2800 in last 3 months?"

[rajesh9pl]

No no no!

Your stocks may have priced/worth well GBP 2800 in past 3 months but UKBA is concerned what will be in your hand when you will reach UK. Between your application date and arrival date, the stock prices may fall. However, a liquid money (cash) can not loose its value, except exchange rate fluctuation.

Please find another way to meet the Maintenance Funds requirement. I would suggest you to liquidate your stocks and deposit money into a bank for 3 months. Sorry, but in such case you will have wait!.

[shaizi]

but this is 50-50 game. this totally depends on the share value. in case of cash in hand, eventhough no one can say that the value of pak ruppee will remain same at the time of arrival to UK.

I have my application ready and I can't wait b'cause I am a salaried person and giving evidence of tax documents instead of bank statement. If I wait then my tax document will become invalid as its based on financial year from July to June and I should have submit my application till 30 Sep as UK policy states (with in 3 months of the claiming 12 month period).

that's why I was asking about my investments.
Tell me one thing, why UKBA have written this financial institution point as they have clearly mention bank statement in other point. Why they separatly written this one. It's mean, it is something else from a bank statement.

I have email UKBA but they didn't response yet.

[rajesh9pl]

I too understood you are ready with rest of the evidences to apply but you should have planned way ahead. I have seen many applicants on this board who borrowed money from family/father, deposit into their account and then wait for 3 months to complete.

Application fees of Tier1 is too high, hence, you should not take any undue risk.

Bank statements are far better than a Tax documents to prove your earnings. You can always include Tax certificate to demonstrate money (salary) was legally earned.

You need to email to your local BHC (British High Commission) for this query. I would suggest you to search this forum more for your satifaction. Straight forward cases are easily and quickly approved.

Best of luck.

[geriatrix]

Not commenting on validity of shares as acceptable evidence for Tier 1 here, but highlighting another issue - that of financial institutions.

But in guidelines, they have listed a point that
"Letter from a financial institution confirming funds".

Read the guidance carefully ! This is what it states:

Letter from financial institution regulated by the Financial Services Authority confirming funds

1. Financial Services Authority (FSA) is an independent body that regulates the financial services industry in the UK. Even if we assume that FSA regulates stock exchange, it will be UK based exchange(s) and not overseas stock exchanges (e.g. - KSE).
2. AFAIK, the stock exchange will not issue you any letter but only the stock brokerage firm / bank / another FI -that you deal with for trading - will issue any such letter confirming your shareholding (and its market value on a said date). And these FIs in Pakistan are not regulated by FSA.

In a nutshell, a letter from financial institution(s) will only work for applicants who maintain funds with FSA regulated (read UK based) FIs.

regards

[shaizi]

Yes. you are right sushdmehta. Actually I was confused due to two different statements on UKBIA website. They have written this Letter from financial institution regulated by the Financial Services Authority confirming funds in its policy guideline pdf document.
But on the website it only states Letter from a regulated financial institution confirming funds , so there was a confusion.

I've contacted IAS and they said that shares are not valid proof. So I've to repare my application based on other grounds

[geriatrix]

But on the website it only states Letter from a regulated financial institution confirming funds

Both the policy guidance and the UKBA website mention the same thing - letter from FI regulated by FSA.

Anyway, what matters is that you now have clarity on the issue.

regards

[rajesh9pl]

I am aware of FSA as I have worked for a large Insurance company of UK. But couldn't pick the reason of OP on term FI again and again. Thanks for bringing on another relavant perspetive of this debate. Thanks.