Administrators are trying to figure out how and why the funds were "co-mingled".Credit:Jessica Shaprio
Ferrier Hodgson has likened the collapse of Halifax,which had 12,000 clients in Australia and New Zealand,to other high-profile stockbroker collapses in recent years including BBY,Sonray and Opes Prime.
Action against the company by the corporate regulator is possible,with sources saying the Australian Securities and Investments Commission was taking a close interest in the outcome of the administration.
There appears to be extensive co-mingling of client monies.
Administrators from Ferrier Hodgson
More than $190 million of client money remains frozen as the administrators seek court approval for distributing the money back to clients.
Given the"co-mingling"of client funds,this could see all customers of Halifax receiving less money than they had placed into their trading accounts,despite not being responsible for how their money was used by the company.
The missing money is equivalent to 9 per cent of the total customer funds held by Halifax ahead of its collapse.
Halifax's clients can still close out trades (that is,sell shares in a particular entity,or close off a bet on the oil price falling,etc) but they are not able to recoup their funds.