professor_frink,
As I understand it, and I only know what I have read mainly from media sources, Sonray was both a referring broker and a CFD provider/market maker.
From the broker side, the shares were held in the company's omnibus account, ie they were in the name of Sonray, with those that actually stumping up the dosh to purchase the shares, underlying beneficiaries but not actually the shareholders. That is why the Administrator, called in by the company directors, ceased all assets held in the name of the company. That is why those who did purchase shares are outraged to find that, as a consequence, they are now unsecured creditors. If people don't like this arrangement, then pressure your local State and Federal MP's to change the law. Don't just whinge about it. Set up "We Was Robbed" Committees by all means but the primary matter should be an alteration to the law to make it very clear who actually owns the shares.
There are apparently, media stories of couples, having lost superannuation money, decided to invest their life savings in shares through Sonray and borrowed against their house to do so [Groan - Another one!] There are also rumours that one investor has so far lost $20M of his funds with Sonray as a result of it going into administration. (Administration is costly and a pain. Just to secure a pub in Tasmania required a team of four to fly in the night before to secure the assets and that team had to be paid and their costs covered.)
As for the CFD group, the cash in those segregated accounts, which really are just ledger entries as amounts owed, ie creditors, is also now in the hands of the Administrators. And
"If there is a deficit in the segregated account and in the unlikely event that Sonray becomes insolvent before it makes up the deficit in the segregated account, then you will be an unsecured creditor of Sonray in relation to the balance of any monies owing to you from the segregated account."
RazzaDazzla, the very fact that you are raising issues means you have a problem to solve and are apparently uncomfortable with the situation. Only you can resolve those problems, which may be actual or potential ones. No one on this forum can do it for you. Only you can satisfy yourself whether you're comfortable with IB, its financial soundness, its insurance backup or whatever other issues you're concerned about. If it provides you with peace of mind, get professional tax and legal advice. It may be worth the cost.
I have been accused, to my face by the way, of being callous to those who have lost money. It's not true as I know the feeling having had to sell various assets to expunge a six figure debt. It hurts, it's sad, it's painful, it places stress on the family but that's life and the consequence if you make bad financial and investment decisions. Yet I was never in danger of losing my home or other assets due to establishing various defensive buffers around them. Now it frustrates me no end when I hear and read of stories where people enter into financial arrangements placing their life savings or hard earned at risk. I couldn't, and wouldn't, be a financial councilor or planner for quids.
And on litigation issues, enter it with trepidation. Lawyer joke:
One lawyer in town; starvation. Two lawyers in town; prosperity. And they were not referring to the client's prosperity. The
We was wronged approach does not guarantee success in the courts.