ASIC inquiry follows Banksia collapseGEOFF ADAMS November 6, 2012 4:02am
The Banksia Securities collapse and the subsequent failure of another associated company has sent shockwaves through the financial services industry.
The Australian Securities Investment Commission has launched an inquiry, the Rural Finance Corporation is offering information on a hotline and organisations including Campaspe Shire Council have offered support for investors.
Banksia Securities was placed in receivership on Thursday, October 25, after the company sought help fearing it was insolvent or about to become insolvent, and more than $600
The receiver, McGrathNichol, has suggested investors could receive a ‘‘meaningful’’ return on their investments, but they say it is too early to say what that figure will be.
Rural Finance Corporation has offered to take calls from regional people affected by the Banksia collapse on a hotline. Corporation chief executive Rob Goudswaard said last Friday they had received a modest number of calls.
‘‘About 90 per cent of the calls are making sure they understand the facts and clarifying the position of debenture holders,’’ Mr Goudswaard said.
One call required a reference to a counselling service.
Mr Goudswaard said investors may have become more comfortable with the Banksia companies because they developed in the region and had been well known for some time.
However, he said a common rule for investing was that higher returns were usually accompanied by higher risk.
‘‘Some people will go for higher returns and may not appreciate the risks.’’
Banksia was founded in Kyabram and over the years has attracted large investments from the rural and farming community in the region.
In the last financial year, the annual report records Banksia had a total of $691
Auditors signed off on the accounts on September 27.
Banksia office holders were: chairman Peter W. Keating; managing director Patrick J. Godfrey; directors Nicholas L. Carr, Neil S. Mathison and G. Grenville Skewes.
Mr Godfrey is no longer managing director but remains a director.
Geoff Adams holds a small investment account with Banksia Securities.
Coca-Cola Amatil has confirmed it will be pressing on with its $100 million redevelopment of SPC Ardmona.
Beautiful weather greeted Tungamah residents for the 18th running of the Tungamah Lions Ten Thousand on Sunday.
When Keith and Marion Grumley and their growing family moved to Tatura on January 18, 1968, little did they know that it would be the start of a long and lasting connection to the town.
Mary and Molly Byrne are urging others to support National Bandanna Day today.
Rochester Rotary Club has celebrated its 50th birthday in style.
Sorting future of Campaspe pools
A theatre production with a difference is coming to Seymour.
Local athletes will go head-to-head with some of the best competitors from around the world in swimming and athletics in December.
District residents and visitors will be able to enjoy some of the region’s most beautiful private gardens on Sunday.
The 116th annual Cobram Show went off with a bang at the weekend, drawing in crowds from far and wide for two days of fun.
The annual Deniliquin Garage and Town Sale event is being held tomorrow, and more than 16 homes are registered for the bargain day.
Further redundancies at Victoria’s largest rural water corporation, Goulburn-Murray Water, are possible, with more efficiency reviews being carried out.
Rotary's inaugural Community Policing Award goes to Detective Leading Senior Constable Jenny Parker for her work above and beyond her duties working with victims of sexual abuse.
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