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  1. #21
    Junior Member
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    Feb 2019
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    This is exactly my concern too. Is my ASB share trading account exposed to the dreaded counter-party risk should the parent Bank get into strife?

    Basically this seems to be akin to a ‘bail-in’ situation similar to that prescribed by the Open Bank Resolution where depositors become responsible for the shortfalls created a bank.

    Does anyone know of an online service that provides the equivalent of a share certificate? I think we all got rogered here by our transactions all being pooled under the Halifax account?! Any advice would be welcomed.

  2. #22
    Legend peat's Avatar
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    Aug 2004
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    Whanganui, New Zealand.
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    I checked out the Halifax software but wasnt impressed and so lost interest in them.

    Always get stuff you buy registered in your own name if at all possible. Sure CFD's cant be , and overseas holdings tend to be custodial but dont have to be (I think)
    For clarity, nothing I say is advice....

  3. #23
    Senior Member
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    Jan 2015
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    512

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    anyone went to the 2nd meeting?

  4. #24
    Junior Member
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    Feb 2019
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    No but there is a good podcast of the meeting on the administrators website https://www.ferrierhodgson.com/au/cr...ealand-limited

    Very frustrating as an IB user - we are getting shafted simply because our funds passed through an (illegally) pooled multi-platform account on the way to our brokerage account. This account was being siphoned by the Bentley-leasing lizard in Australia to pay operating expenses. With no intention on our part, we have ended up using 10 cents of someone else’s money for every dollar transferred to the IB platform.

  5. #25
    ShareTrader Legend
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    Jan 2002
    Location
    auckland, , New Zealand.
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    7,573

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    BBY clients one step closer to finding out their fate four years after the collapse

    https://www.abc.net.au/news/2019-05-...ction=business

    i had a account with BBY but was fortunate to have moved my funds a yr before demise. do not have funds with halifax but wonder if this means halifax situation will drag on for yrs like BBY
    bull
    One step ahead of the herd

  6. #26
    Advanced Member
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    Sep 2009
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    This looks hopeful for those affected
    http://www.sharechat.co.nz/article/2...September+2019

  7. #27
    Advanced Member
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    Apr 2008
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    Kerikeri
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    Just been through the KPMG Investor Update - 24 Aug 2020

    Is this for real ? Seems unbelievable to me ? Aren't these the guys the same ones who caused the issue ? Lets say they are successful....will we then need to approach them, as the Majority Shareholders, for our share of the money that might be transferred to them ? Or do they just pop it in their bank and walk away ? What to do ? Trust the process ? Any thoughts ?

    "The Liquidators understand the argument, in a very short form, put forward by the Majority Shareholders is that clients of Halifax AU who paid the full purchase price to Halifax AU in respect of shares were not beneficial owners of those shares but rather had contractual entitlements as if they had entered into “contracts for difference” in respect of which Halifax AU was the counter party. This is, according to the Majority Shareholders, even though investors may have believed that they were entering into transactions to acquire shares. As a consequence, investors would be creditors of Halifax AU (rather than beneficiaries of a trust). The Majority Shareholders argue that Investor claims should be valued as at 23 November 2018, with any surplus assets above the 23 November 2018 balance of the portfolio (taking into account the deficiency) to be paid to them."

  8. #28
    Legend peat's Avatar
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    I signed up to Halifax.com.au but never gave them any funds.
    I checked all my correspondence with them and it was clearly CFD's they were offering

    However it would appear to me that they should have held the money in trust according to this from the FMA web site https://www.fma.govt.nz/compliance/r...tives-issuers/

    Licensed derivatives issuers are required to comply with the requirements contained in the FMC Regs for the handling of derivatives investor money and derivatives investor property. These include:

    • Holding derivatives investor money and derivatives investor property on trust for the investor (or ensuring that derivatives investor money and derivatives investor property is held on trust for the investor).
    • Ensuring that derivatives investor money is paid promptly into a specified bank to a trust account and held separate from money held by or for the derivatives issuer or offeror on its own account.
    • Daily reconciliations of derivatives investor money and derivatives investor property either by an equity-based reconciliation in accordance with regulation 244A of the FMC Regs or a cash-based reconciliation in accordance with regulation 244B of the FMC Regs (an equity-based reconciliation must be carried out if the derivatives issuer carries out authorised hedging activities).
    • Derivatives investor money and derivatives investor property must not be used to satisfy any liability of a derivatives issuer.
    • Keeping and maintaining up-to-date records of derivatives investor money and derivatives investor property held for each investor.
    • Obtaining an assurance report, within 4 months after the issuer’s balance date, that states whether, in the auditor’s opinion, the derivatives issuer’s processes, procedures, and controls relating to derivatives investor money and derivatives investor property were suitably designed and operated effectively during the accounting period (see the Supervision by us section for information about additional assurance reporting obligations).
    For clarity, nothing I say is advice....

  9. #29
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    Quote Originally Posted by peat View Post
    I signed up to Halifax.com.au but never gave them any funds.
    I checked all my correspondence with them and it was clearly CFD's they were offering

    However it would appear to me that they should have held the money in trust according to this from the FMA web site https://www.fma.govt.nz/compliance/r...tives-issuers/
    I think "should" is the operative word Peat unfortunately. I signed up via NZ, I think my acct is in Australia, IB. Funded it with USA dollars and now have a spectacular mess. Only bought USA shares which I thought would be held in my name even if at a custodial service. Not so seemingly. Very ugly.

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