Australian Halifax broker with a suspended license for 12 months

The Australian Financial Supervisory Commission, ASIC, announced in the announcement that it would immediately suspend the broker's license of Halifax Investments Services Pty Ltd. on 12 months, ie until 10 January 2020.

Nail to the coffin

Virtually in every case, the decision of the regulator to suspend the license results in the termination of the broker's further activity - the inability to service customers in combination with very bad PR is a nail in the coffin. Halifax has been in bankruptcy since November last year, but there was still hope of getting the company straight (three supervisors were appointed to raise the company from bankruptcy). Now it is practically gone. The conflict between the shareholders is unofficially believed to be the cause of Halifax falling into serious financial trouble. However, the official reason has not been published.

In the current situation, without a valid license, the broker has a very limited field of activity and can perform only selected actions, i.e .:

• providing clients with access to the external schema of dispute resolution in which the broker is a party;
• making arrangements for the repayment of liabilities and having insurance against financial liability / due diligence;
• terminating contracts with existing broker clients.