Accounting ‘Irregularities': Halifax Investors Face Long Wait to Get Money Back

Investors in collapsed Australian derivatives trader Halifax are set to have a long wait to get their money back after the administrator found "accounting irregularities" and said they will have to go to court to get a direction on how to disperse the money, The New Zealand Herald reported. Voluntary administrators Ferrier Hodgson, who were appointed in November, released an update on Halifax yesterday and said they had now undertaken a wide-scale investigation of Halifax's financial position. They found a deficiency in the company's assets of around A$19.7 million or 9 per cent of investor funds before costs and said the primary reason for the deficiency appeared to be the use of client money to fund operating losses at the company since at least January 2017. "The management accounts, audited accounts and lodgements with ASIC all appear to present with accounting irregularities; and there appears to be contraventions of client money rules and the Corporations Act 2001 in connection with dealing with client monies, including payment of operating expenses directly from client funds." Read more