Kiwi Investors Fear Online Broker Halifax Investment Services Entering Administration

Customers of the Halifax NZ online brokerage firm say their funds have been frozen since the Australian-based parent company entered the administration.

The partners of insolvency specialist Ferrier Hodgson were appointed directors of Halifax Investment Services in Sydney on November 23, according to the Australian Securities and Investments Commission.

The New Zealand subsidiary is headed by Andrew Gibbs, who declined to comment saying that he was attending a meeting before hanging up on the phone when he was contacted by the manager. Herald aujourd & # 39; hui.

A Auckland-based investor who gave his name, Luke, said other customers had been informed that they could not withdraw funds from their account with Halifax. He invested $ 45,000.

Halifax NZ offers a currency spread, CFDs, stocks and options. It is regulated by the Autorité des marchés financiers.

Luke said he was looking for answers after his account manager had told him that he was no longer working.

"It was said that I could not withdraw my money, only the administrator has access to the funds and I can not say if my investment is safe or not," he said. press. Herald.

He said he did not know how many people were affected, but he knows some friends who have funds with Halifax.

A statement posted on Ferrier Hodgson's website indicates that the directors of Halifax Investment Services are assessing the best course of action and focusing on the best results for investors.

"Investors are our main concern at the time," said director Morgan Kelly.
"We are conducting an urgent investigation into business operations and will ensure that all stakeholders, creditors, investors and employees are informed of developments."

A meeting of creditors will be held in Sydney on December 5 and in Auckland on December 7.

Halifax NZ was licensed by the FMA in June 2015 to deal in a variety of financial instruments, including futures, options, currencies and CFDs.

The company may also trade on local and international stock markets.
It has offices in Auckland and Wellington.

The most recent accounts filed with the Board of Companies reveal that Halifax NZ earned $ 2.4 million in brokerage and underwriting income as at March 31, for a profit of $ 16,726.

The company is required to maintain net tangible assets of at least $ 1 million, or 10% of sales.

In June 2015, she secured a $ 1.2 million subordinated loan from the Australian parent company, Top, which meets the requirement. The conditions provide Halifax Investment Services with security over the assets of the company.

As at March 31, 2018, the balance of the loan amounted to $ 1.11 million.