AFSL enters voluntary administration
Sydney-based Australian Financial Services Licensee (AFSL) and stockbroking firm, BBY Ltd, has entered voluntary administration just 10 days after announcing its decision to exit the options clearing business.
The Australian Securities and Investments Commission (ASIC) was notified that BBY had been placed in voluntary administration yesterday, with KPMG appointed as voluntary administrator and PPB Advisory named as receiver and manager.
ASIC announced that all trading by BBY on the Australian Securities Exchange (ASX), Chi-X Australia and APX markets had been suspended as a result of the move into voluntary administration.
"Throughout this process we have been working in close contact with the ASX as the relevant market operator and central clearer for the equities and exchange traded options markets," ASIC said in a statement.
"ASIC will consider further the circumstances surrounding the voluntary administration and receivership of BBY, particularly those concerning compliance with laws on governance, disclosure and conduct.
"Under the law, including the Corporations Act and Market Integrity Rules, licensees such as stockbrokers must keep client money separate from their own.
"This is an important safeguard to protect the interests of retail investors. Client money must be adequately protected."
AUTHOR
Nicholas O'Donoghue
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