The Australian Securities and Investments Fee (ASIC) introduced this Monday that it has suspended the Australian monetary providers (AFS) licence of Halifax Funding Companies Pty Ltd till January 10, 2020.
Halifax was an Australian funding administration firm headquartered in Sydney. It additionally has a partially-owned subsidiary in New Zealand. As Finance Magnates reported in November, the agency has gone into administration.
Uncover iFX EXPO, Your Gateway to Asian Markets!
On November 23, 2018, three joint voluntary directors had been appointed to Halifax – Morgan Kelly, Stewart McCallum and Phil Quinlan, of Ferrier Hodgson, a agency that specialises in company restoration and advisory,
Underneath the licence suspension from ASIC, the agency continues to be capable of proceed choose operations: “to make sure that purchasers of Halifax proceed to have entry to an exterior dispute decision scheme; to make sure that Halifax continues to be required to have preparations for compensating retail purchasers, together with the holding indemnity insurance coverage cowl; and to permit for the termination of present preparations with purchasers of Halifax.”
Why Ought to Brokers Get Rid of Their IT DepartmentGo to article >>
Halifax traders anticipated to be out of pocket
When talking at a collectors assembly in Sydney, administrator Stewart McCallum mentioned that Halifax had A$211m ($151.5 million) of shopper funds on the time directors had been appointed on November 23 however solely obtainable money of A$190m-$200m to satisfy these investments, a report from the New Zealand Herald mentioned.
Particularly, traders within the collapsed derivatives dealer might be taking a look at a lack of between A$10-20 million, directors mentioned. Moreover, it might be years till they’ve their claims resolved. McCallum didn’t give any causes for the shortfall.
Supply: Ferrier Hodgson
In late December, the directors sought an extension of 90 days, as a result of sophisticated course of and delays as a result of Christmas vacation interval.
Commenting on the extension, McCallum mentioned: “We don’t suppose that throughout the present timeframe we’ll have the ability to give collectors a ample image about what has occurred … or know what traders are entitled to or the place they could sit between Australia and New Zealand. There are many complexities.”