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Australian broker goes out of business

Discussion in 'Scam Alerts' started by moksha, Jun 23, 2010.

  1. moksha

    moksha Recruit

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    Hello
    Bad news for almost 3000 clients of an supposed to be reputable Australian broker Sonray capital market ( a white label partner of Saxo) gone out of business.
    Broker Sonray collapse hits 3000 clients
    Accordingly to ASIC rules the clients funds ares supposed to be protected!

    Are there any clients of Sonray on this forum?
    Please contact me
    MJ
     
  2. Jaycee28

    Jaycee28 Recruit

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    I am not a client of Sonray, but a few months ago wanted to set up an account with them. However I found that their client agreement included a clause that says my money will be co-mingled with other Sonray clients and could be used as free and clear collateral by Sonray, and further is treated as the legal and beneficiary property of Sonray. That meant that I would only be an unsecured creditor if they go belly up, which is what is happening and these were not the terms I would do business with, and hence did not open an account with them. You need to scrutinize every term in any agreement.

    I do not think that ASIC says that clients funds are protected in this case. The National Guarantee Fund (brokers pool that you mean) proctects you if you are dealing with a "Participant" and Sonray is not a "Participant". You could read what constitute a "Participant" in the ASX web-site Australian Securities Exchange - Stock Market Information, Stock Quotes - ASX
    (Sonray was an Australian Financial Services Licensee ie AFSL, not a "Participant", which requires more capital and compliance requirements.
     
  3. moksha

    moksha Recruit

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    Sonray

    Thanks for the explanation good for you , too late for me
     

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