A liquidators' report into the collapse of discount broker Access Brokerage shows the firm had been using client funds to run the company for some time, leading to a shortfall of $4.8 million in its client trust account.
Wednesday, September 15th 2004, 4:08PM
by The Landlord
Liquidator Brendon Gibson said in a statement today there were no proper processes in place for Access to withdraw client funds for commission and expenses.
Gibson said outstanding client obligations totalled $9.141 million, which was due to about 500 clients. "Taking into account the assets which appear to be related to client obligations, the shortfall will be in the region of $4.8 million."
He said this would be partially covered by asset sales, and estimated a total loss to all of the company's creditors and claimants of about $3.7 million before liquidation costs.
But Access' clients look unlikely to be left out of pocket, as the Bank of New Zealand (BNZ) and New Zealand Exchange (NZX) both stepped up to the plate today.
