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Halifax went under external administration

Discussion in 'Forex and Cryptocurrencies' started by Seneka, Nov 26, 2018.

  1. Seneka

    Seneka

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    Halifax went under external administration. How to recover the funds from MT4?
     
  2. Ann

    Ann

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    I wonder if that means Lloyds is in trouble too?
     
  3. Smurf1976

    Smurf1976

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    Is this serious?

    Halifax as in the bank in the UK, right?

    If they're in trouble then that's rather serious to say the least. Australian equivalent would be saying CBA or Westpac just went bust. Serious news and likely the sign of big trouble ahead if correct.

    Or is this a different "Halifax" not the same company?
     
  4. greggles

    greggles I'll be back!

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    The company that is in external administration is Halifax Investment Services, not Halifax the UK based banking company.
     
    Smurf1976 and Gringotts Bank like this.
  5. Seneka

    Seneka

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    Has anyone experienced their Australian forex broker closing on them? What is the course of action? Is there any way to get any money back?
     
  6. cynic

    cynic

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    Perhaps not the most ideal comparison, on account of the size and complexity, of MF Global's operation/s and associated predicaments, but the following post, contains some prudent advice, about the drafting of a simple letter of demand to the administrators, and issuing copies of it (in accompaniment with account details and copies of most recent statement/s) via both mail and email:
     
  7. Gringotts Bank

    Gringotts Bank

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    Halifax Investment Services. Make a careful note of those who ran this set up and anyone who worked for them.

    https://www.financemagnates.com/forex/brokers/exclusive-halifax-investment-services-has-gone-bust/

    "Sydney-based Halifax Investment Services is a subsidiary of Lloyds Banking Group. Its CEO is one Andrew Baxter. According to his LinkedIn profile, Baxter is also the CEO of two other entities – Australian Investment Education, which offers trading courses, and Grange Capital Management, a “Boutique Investment Manager” which doesn’t appear to have a website".
     
    Last edited: Nov 26, 2018
  8. basilio

    basilio

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  9. noirua

    noirua

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    Noel Edmonds likely to file £60m Lloyds lawsuit on Wednesday
    https://www.theguardian.com/busines...ikely-to-file-60m-lloyds-lawsuit-on-wednesday
    TV star, expected to join I’m a Celebrity this week, says gains will fund charity to help banking victims
    ---
    HBOS plc is a banking and insurance company in the United Kingdom, a wholly owned subsidiary of the Lloyds Banking Group, having been taken over in January 2009. ... Although officially HBOS is not an acronym of any specific words, it is widely presumed to stand for Halifax Bank of Scotland.
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    HBOS plc is a banking and insurance company in the United Kingdom, a wholly owned subsidiary of the Lloyds Banking Group, having been taken over in January 2009. It is the holding company for Bank of Scotland plc, which operates the Bank of Scotland and Halifax brands in the UK, as well as HBOS Australia and HBOS Insurance & Investment Group Limited, the group's insurance division.
    https://en.wikipedia.org/wiki/HBOS
    ---
    Noel Ernest Edmonds (born 22 December 1948) is an English television presenter and executive producer. Edmonds first became known as a disc jockey on BBC Radio 1 in the UK, and has presented light entertainment television programmes for more than forty years. Originally working for the BBC, these have included Multi-Coloured Swap Shop, Top of the Pops, The Late, Late Breakfast Show and Telly Addicts. From 2005–2016, he presented the Channel 4 game show Deal or No Deal.
    https://en.wikipedia.org/wiki/Noel_Edmonds
    In June 2017, Edmonds said he attempted suicide in 2005 after fraud by a group of HBOS financiers destroyed his Unique Group business: "Until these criminals took me to the brink of emotional annihilation, I had always felt those who opt out by taking their own lives were selfish and cowardly... But having been cast into that bottomless dark space devoid of logic and reason, I have a much deeper understanding of life without hope... I seek no sympathy and feel no shame in admitting that on the evening of January 18th 2005 I attempted to end the overwhelming mental pain which had consumed my whole being."[73]
     
    Last edited: Jan 12, 2019
  10. bigdog

    bigdog Retired

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    Update on lawsuit today

    https://www.smh.com.au/business/ban...d-up-at-collapsed-broker-20190212-p50x9a.html

    Nearly $60 million in customer money mixed up at collapsed broker

    By Sarah Danckert
    February 13, 2019 — 12.00am

    Administrators picking through the wreckage of one of the country's largest online broking houses Halifax Investment Services, have found that $57 million in money invested by clients has been mixed up with funds belonging to the company.

    Halifax collapsed before Christmas, freezing $210 million invested by its 12,000 plus clients as Ferrier Hodgson was brought in by the company to review its books and records.

    The collapse is so large, administrators liken it to high profile stockbroker collapses including Opes Prime, BBY and Sonray. Ferrier Hodgson is also trying to pinpoint the amount of investor funds that has gone missing.

    The administrators said they had located around $185 million of the $210 million of investor funds.

    Ferrrier Hodgson partner Morgan Kelly said the administrators had recently increased their estimate, saying the shortfall of funds could top $25 million, compared to an earlier prediction that between $15 million and $20 million of investor money was gone.

    Halifax's problems with having a shortfall of investor funds began at least two years ago, according to administrators.

    "Investor funds have been co-mingled in such a way that the taint affects the claims of all investors on all three platforms in both the Australian and New Zealand businesses," Mr Kelly said.

    "The process of allocating and tracing individual investor funds will likely be a complex and lengthy process."

    The mixing of investments, or "co-mingling" of funds, can be a serious breach of companies law.

    "We’re working closely with ASIC on all aspects of the investigation," Mr Kelly said.

    Hallifax operated and offered three trading platforms -- Interactive Brokers, MetaTrader 4 and the MetaTrader 5 platforms. Interactive Brokers, which has a stockbroking licence, is a third party online trading platform that provides a white label product to Halifax.

    The platforms allowed Halifax's clients to invest in a range of products and equities foreign exchange derivatives, equity derivatives and indexed contracts for difference.

    The majority of the client funds lie with Interactive Brokers - with $110 million on the platform in Australia and a further $44 million in the platform in New Zealand. The remainder was invested in the MT4 and MT5 platforms.

    “We have been considering strategies for the timely return of investor funds, the options are currently a Deed of Company Arrangement or placing Halifax into liquidation," Mr Kelly said.

    Halifax's sole director at the time of its collapse was Gold Coast businessman Jeff Worboys. The group had offices in Sydney, Melbourne, Auckland and the Gold Coast.

    Only the Auckland and Sydney offices remain open.

    Minutes of a meeting of committee of creditors reveal that it is unlikely Mr Worboys will propose a Deed of Company Arrangement (DOCA).

    The administrators have also been in discussions with Andrew Gibbs, the director of Halifax's New Zealand arm, about a potential DOCA.

    The corporate watchdog suspended the financial licence of Halifax in January after discussions with administrators. Investors will still be able close out their trades despite the suspension.

    Halifax was the subject of an enforceable undertaking with ASIC in 2013 following regulatory action by the Australian Securities and Investments Commission (ASIC) over a slew of concerns about the operations of the business.
     
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