ASIC inquiry follows Banksia collapseBy Geoff Adams
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.
A Tamleugh North farmer has described the theft of four sheep fences from his tornado-damaged property ''a low act''.
Most people at the J C Lowe Oval left on Saturday evening talking about the game but not the result. Pigeon Coach Chris Kennedy summed up the feeling adequately when he said after the game; “it was a frustrating game, but my players weren’t responsible for the frustration.”
The move to extend the Tatura War Memorial area and honour Victoria Cross hero Robert Mactier with the erection of a statue in the Hogan St gardens named in his honour, continues.
A Kyabram man who struck a cyclist on Echuca-Moama bridge with a beer can thrown from the vehicle he was in was convicted and fined $400 in Moama Local Court on Wednesday.
A Rochester mother told a health forum about the devastating effect drugs have had on her family.
Over six hours of junior football is scheduled for Kyabram Recreation Reserve this Sunday.
Ten people were injured after Two Australian Light Armoured Vehicles (ASLAV) collided during a training course at the Puckapunyal Military Training Range in on Wednesday, May 22.
The Finley Apex Sports and Community Centre has secured a $500,000 grant from Regional Development Australia.
A purpose-built bike, equipped with amateur radio, will be on the O'Keefe Rail Trail tomorrow.
Cobram residents John Anderson and Ian Cobb will race down memory lane this weekend when they compete in the annual Historic Winton.
Deniliquin Fire and Rescue's open day has been hailed a success by captain Bill Muirhead.
The Department of Environment and Primary Industries (DEPI) is investigating incidents of abortion or still-births under the Lamb and Kid Mortality Surveillance Project.(LKSMP).
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