The Australian Securities and Investments Commission (ASIC) will appoint a receiver to former OTC derivatives issuer Berndale Capital Securities, following a successful application to the Federal Court.
The regulator sought the application following concerns about Berndale’s records, handling of client money, adequacy of client money reconciliation reports, and allegations that client monies were being held outside of Australian authorised deposit-taking institutions in breach of the law.
This decision followed the cancellation of Berndale’s Australian financial services licence on 22 November, 2018.
The orders extended to appointing receivers and managers for Berndale’s related companies, Berndale Capital Securities Management and Algoplus, as well, based on ASIC’s belief that the financial affairs of each company were extensively intermingled.
Both ASIC’s investigation and the proceedings before the Federal Court were ongoing, with the receivers requires to report back to the court on the matter by the end of May. Rachel Burdett-Baker and Bruno Secatore of Cor Cordis in Melbourne were appointed to act as joint and several receivers.