As you may have read in the news, Halifax have gone into voluntary administration. While a business going into administration doesn’t normally make the headlines of leading Australian and New Zealand news publications, this one has for some worrying reasons: clients monies have been mixed up with company funds.
SelfWealth Cash Account Structure
While not the most exciting of topics, the cash account structure at SelfWealth is important in understanding why we differ from Halifax Investment Services in holding your cash.
Client monies are held in a trust account in SelfWealth’s name as bare trustee; monies are physically held by ANZ. SelfWealth is not entitled to withdraw any amount from client cash balances in the trust account, except in accordance via a direction from you, the client. Each SelfWealth cash account is reported individually to APRA by ANZ and the trust account is governed by ASIC and cannot be used for corporate purposes, including if SelfWealth were to enter administration or liquidation and needed to pay debtors.
Halifax Investment Services had comingled accounts, which allowed them to access client funds for other purposes.
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