Halifax's Deficiency in Client Moneys Reaches AU$44.6 million
KPMG, the Liquidator of Halifax Investment Services Pty Ltd, recently said that it is unable to confirm when the judgment will be handed down. They will provide Investors with an update shortly after judgement is handed down by the Courts.
In the meantime, KPMG is working on the planning process for the distribution. Given the number of Investors (approximately 12,000) and the value of the assets currently held by the Halifax Group, this is a complex process which requires significant work by the Liquidators.
Deficiency update
KPMG has prepared an analysis in the movement in Investor equity balances between 23 November 2018 and 28 February 2021. These equity balances represent the balance of client accounts on the trading platforms and are not an indication of the value of assets held by Halifax AU and Halifax NZ. These values are calculated using exchange rates as at 23 November 2018 and 28 February 2021.
The following table indicates that the increase in the value of equity balances is relatively evenly split across platforms (with the exception of MT4 which does not hold a significant volume of shares).
As at 23 November 2018, there was an estimated deficiency of $19 million, representing 9% of client equity positions as at that date. That is, the total amount of assets held on trust for clients of Halifax AU and Halifax NZ was $192.6 million and client equity positions totalled $211.6 million.
As at 28 February 2021, there is an estimated deficiency of $44.6 million, which represents 16% of client equity positions (as at 28 February 2021), with the total amount of assets held on trust for clients of Halifax AU and Halifax NZ being $241.1 million and client equity positions being $284.8 million.
The increase in the deficiency from 23 November 2018 to 28 February 2021 reflects market fluctuations in respect of unhedged positions and the cost of the Voluntary Administration and Liquidation including platform costs, wages, rent, legal fees and remuneration of the Voluntary Administrators and Liquidators and other operating costs which have been incurred and paid (with the approval of the Courts).
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