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?
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: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?
Dear MF Global CFD Client,
Many of you have received multiple emails from the MF Global receivers and administrators yesterday.
As a result, Seismo Market Solutions (as a partner of MF Global Australia Ltd) has received large number of email & telephone queries from MF Global clients who are confused by the emails sent, as to what they mean, what exactly they pertain to and what actions to take.
To the best of our understanding, we advise the following:
1. If you are an MF Global client with a CFD or other account you are NOT a creditor.
You do not have to open a new MF Global account as implied by the emails you may have received.
You only need to open a new account if you are a contractor or service provider to MF Global.
2. Due to the resulting confusion and continuing uncertainty as to the repayment of funds, we recommend that you draft a simple letter of demand to the administrators and send a copy with your latest MF Global CFD account statement attached, requesting full repayment of your funds within 7 days. Send the letter & your statement both by mail & email. We recommend that you do this in addition to any previous emails or correspondence you may have sent. Make sure you note your contact details, your MF Global CFD account details, your account name etc so that it matches the details on your MF Global account statement - to assist the administrators.
3. In an effort to help all clients who have MF Global accounts, we will be speaking directly with the administrators on Monday Nov 7th 2011 to clarify what exactly is going on and what actions MF Global CFD account clients should take in response to the emails you may have received yesterday. Pending the administrators response, we may notify you in due course (pending their permission for Seismo to do so).
4. Accordingly, we suggest that you only respond to the 3 x emails regarding creditors, proxies, etc if you fully understand what is required and or you have received instructions on exactly what you are required to do or how to respond from the administrators . If you are unsure on any aspect regarding your funds or any emails received, you should contact the administrators on 02-8273-8851 or 02-9322-7619 and or seek independent legal advice.
5. It is our understanding only, and based on communications just prior to the administrators being appointed; that MF Global CFD client funds had been returned or were lodged in the MF Global Australia Ltd CFD client segregated account, ready for repayment to clients. We understand that this may not apply to futures or other MF Global accounts.
6. It is also our understanding that the administrators have to fully reconcile both the cash balance and final closed positions of all MF Global CFD client accounts, before they can make any plans to repay client funds. Final open CFD positions were only closed this week and this had made reconciliation a slow process for the administrators. Seismo will use its best endeavours on Monday to further clarify this with the administrators - if possible.
7. Due the large number of enquiries Seimo has received, primarily regarding the repayment of client funds by the administrators of MF Global, we understand many clients are seeking independent legal advice as to what protection(s) may apply to their funds as a result of the funds being held in a CSA "client segregated account" with MF Global. We recommend that you take up what level of protection may apply to you, directly with the administrators. Again, Seismo will use its best endeavours to clarify this issue on Monday with the administrators.
We trust this information answers the numerous questions raised by the many MF Global CFD clients who have contacted Seismo since Thursday 27th October, 2011.
We ask that you that you contact the administrators directly by email or by phone above from now on regarding your MF Global accounts.
We will use our best endeavours to clarify all the above issues with the administrators on Monday and will forward any further information if possible and only if the administrators give us permission to do so.
In closing, our thoughts go out to the many hard working staff at MF Global who are dealing with hundreds of enquiries and assisting the administrators as a result of this matter. We offer them our sincere thanks and gratitude on behalf of Seismo and all our clients who are affected by this matter.
Halifax Investment Services ensnared more than 12,000 people who have had more than $200 million worth of investments frozen since 2018 and are now hoping they might finally see some of their funds returned. A strong sharemarket has actually boosted the portfolio’s value by 35 per cent. Now, it’s worth $285.9 million compared with $211.6 million when administrators were appointed in November 2018.While the administrators haven’t been able to close out any positions without court direction because of the trust structure, many holdings – including options, foreign exchange contracts and contracts for difference – have expired. It all swings the value of what can be returned to creditors.
Yes,who gets what?Not much by the sounds of it.From the same, Saturday AFR article,one investor opened a Halifax trading account in 2011 with$17,000 buying Pay pal,Ebay,Twitterand others,including Spotify when it listed in 2015.Worboys called in the administrators when it became clear the company’s funds were $19 million less than the client assets it was supposed to be holding.
Since then, that gap has widened. As at February 2021, the shortfall was $44.6 million, with company funds drained further by costs such as legal fees, liquidation costs and rent.
But how did that original shortfall ever happen?
First, Halifax was using that “washing machine” money – to borrow the phrase used by KPMG’s barrister – to fund day-to-day operations such as expenses, payroll and credit to the directors, as well as the trading.
That included $1.98 million in director loan account reductions days before the company went into administration; a $609,346 leave entitlement payment to Worboys; a loan payment to another of his companies, AMH, for $124,301; rent payments of $49,631; a rental bond of $6087; and a $39,377 payout of a Bentley lease. Administrators haven’t recovered the cars because they were leased vehicles with no equity for the creditors.
Second, Halifax appears to have been forward paying its revenues. In other words, it was estimating how much revenue it expected to receive and booking it earlier, based on assumptions about what it was likely to earn through interest on deposits and what it made hedging client positions, often with foreign exchange trades. That began to come undone for a number of reasons, including falling interest rates.
Halifax Investment Services ensnared more than 12,000 people who have had more than $200 million worth of investments frozen since 2018 and are now hoping they might finally see some of their funds returned. A strong sharemarket has actually boosted the portfolio’s value by 35 per cent. Now, it’s worth $285.9 million compared with $211.6 million when administrators were appointed in November 2018.
- but who gets what, and at what point in time are the assets valued? Unscrambling this egg will never be fair to all ... but at least there will be return of some money.