Halifax New Zealand Limited (Administrators Appointed) (the Company) CN First creditors' meeting. 7 December 2018

Transcription

1 Halifax New Zealand Limited (Administrators Appointed) (the Company) CN First creditors' meeting 7 December 2018

2 CHAIRMAN S INTRODUCTION

3 Chairman s introduction Administrators: Morgan Kelly, Stewart McCallum and Phil Quinlan Appointed on 27 November 2018 over Halifax New Zealand Limited (Administrators Appointed) ( Halifax NZ or the Company ) Chapman Tripp act as Administrators Lawyers First meeting of creditors has been called pursuant to Section 239AN of the Companies Act 1993 ( the Act ) Live webcast where creditors can view and hear the creditors meeting remotely Ferrier Hodgson financial services experience 3

4 Chairman s introduction Chairperson Pursuant to Section 239AK(3) of the Act Morgan Kelly to act as Chairman Opportunity to ask questions later 4

5 Chairman s introduction General Housekeeping MOBILE PHONES Please turn off mobile phones during the meeting MEDIA Media are in attendance as observers and are unable to ask questions YELLOW ATTENDANCE CARD Only individuals holding a yellow card can ask questions WEBCAST Only creditors that have lodged a proof of debt or proxy can ask questions via webcast. Please include your User ID (if investor), full name and/or the person you are acting as proxy for.? QUESTIONS Questions will be asked at a later timeon. Please clearly outline your name and details (including your User ID) prior to asking the question 5

6 Chairman s introduction Agenda 1 2 Procedural matters Voluntary Administration process 3 Company overview 4 Events leading to the appointment 5 Actions taken by the Administrators 6

7 Chairman s introduction 6 HIS First Creditors meeting 7 Questions 8 Resolutions 9 Closure of meeting 7

8 1. PROCEDURAL MATTERS

9 1 Procedural matters Formal items Present at the meeting Quorum Notice of meeting Convening the meeting Purpose of the meeting Tabling of documents

10 1 Procedural matters Tabling of documents a. Consent to Act as Administrators dated 23 November 2018 b. Written resolution of Halifax NZ board of directors pursuant to Section 238I of the Act dated 27 November 2018 c. Notice of Appointment of Administrators to Halifax Investment Services Pty Ltd dated 23 November 2018 d. Notice of Appointment of Administrators to Halifax NZ dated 28 November 2018 e. Notice of Appointment of Administrators to Halifax NZ and Notice of First Meeting of Creditors published in the New Zealand Herald on 30 November 2018 f. Administrators interest statement g. Director s Report on Company Activities and Property 10

11 1 Procedural matters Administrators interest statement Tabled at this first creditors' meeting is an Administrators interest statement No prior relationship with Halifax NZ, save that on 23 November 2018, pursuant to section 436A of the Australian Corporations Act 2001, the Administrators were appointed administrators Halifax Investment Services Pty Ltd (Administrators Appointed) ( HIS ) No conflict of interest 11

12 2. ADMINISTRATION PROCESS

13 2 Administration process Our primary role - Investigate Company affairs - Return funds to investors Appointment of Administrator Within 8 business days Administrators main task Administrator First meeting of creditors Investigate company affairs Creditors Committee (if desired) Replacement of Administrator (if desired) Administrators report to creditors Within 25 working days unless an extension by the court Watershed meeting of creditors to decide company future Deed of Company Arrangement OR Administration should end OR Liquidation The December public holidays impact the Voluntary Administration timeline 13

14 3. COMPANY OVERVIEW

15 3 Company overview Current shareholders Halifax Investment Services Pty Ltd (Administrators Appointed) 70% Kaye Williams & Andrew Gibbs (Andrew Gibbs Family Trust) 29.5% Andrew Gibbs 0.5% Halifax New Zealand Limited (Administrators Appointed) Current directors Jeffrey Worboys Start: 18 November 2014 Andrew Gibbs Start: 21 May 2008 Former directors Veronica Mary Aris Start: 7 August 2017 Cease: 25 November 2018 Christopher John Weir Start: 1 February 2016 Cease: 26 November 2018

16 3 Company overview Company structure Halifax New Zealand Limited (Administrators Appointed) 70% shareholder Halifax Investment Services Pty Ltd (Administrators Appointed) Halifax Asia HALIFAX NZ - Established in May Previously known as Strategic Capital Management Ltd - Head office in Auckland - Introduces clients to HIS - Mainly dependent on support from HIS HALIFAX ASIA - Introduces clients to HIS - Provides nexus for the financial flow of monies from China based operation HIS - Established in Company is a financial services broker - Operates the treasury function for Halifax NZ 16

17 3 Company overview Futures Options Stock Products Over the counter products Foreign exchange CFDs

18 3 Company overview Locations WHANGAREI AUCKLAND HAMILTON HALIFAX NZ - OFFICE HALIFAX NZ HOME OFFICE HALIFAX INVESTMENT SERVICES PTY LTD WELLINGTON CHRISTCHURCH SYDNEY

19 3 Company overview Employees ON APPOINTMENT There were 5 employees on appointment DURING ADMINISTRATION 2 employees were terminated throughout the first week of the administration CURRENT EMPLOYEES Currently 3 located in the Auckland Office

20 3 Company overview The company operates three trading platforms INTERACTIVE BROKERS White label system All trades and data held on IB s servers. Split between Australianand New Zealand databases Trades in stocks, options and futures. Currency traded in NZ Requires Product Disclosure Statement MT4 Most utilised platform Trades in Foreign Exchange and Index CFDs Virtual trading platform B Book investors unhedged A Book investors hedged through third parties Requires Product Disclosure Statement Most exposure in Chinese Market MT5 Established through migration from previous Saxo capital markets system Similar to MT4 In addition to MT4 trades, MT5 investors also enter into stock transactions. Requires Product Disclosure Statement. Hedging utilised

21 3 Company overview Profile of investors (across Australia and New Zealand): 12,559 Active Accounts AUD $211 million estimated client equity 2,154 $44.4 Million $23.8 Million MT4 $33.0 Million MT4 2,101 5,844 MT5 IB (Australia) MT5 IB (Australia) IB (New Zealand) IB (New Zealand) 2,460 $110.0 Million Disclaimer This information has been prepared from the Company s books and records and has not been verified in any detail by the Administrators. The Administrators do not provide any warranties or representations that the figures provided are accurate or complete and are continuing their investigations in this regard.

22 4. EVENTS LEADING UP TO OUR APPOINTMENT

23 4 Events leading up to our appointment TIMELINE HALIFAX COMMENCED TRADING IN AUSTRALIA TRADING COMMENCES THROUGH HALIFAX NEW ZEALAND LIMITED COMMENCED IN US OCTOBER 2017 JULY 2016 Expanding in other offices HALIFAX ASIA TRADING INTEGRATION FROM SAXO COMMENCED CAPITAL MARKETS TO MT5 Significant investors through Asia 22 NOVEMBER NOVEMBER NOVEMBER 2018 DEFICIENCY IDENTIFIED APPOINTMENT OF ADMINISTRATORS TO HIS APPOINTMENT OF ADMINISTRATORS TO HALIFAX NZ

24 5. ACTION TAKEN BY THE ADMINISTRATORS

25 5 Action taken by the Administrators Action taken to date Froze bank accounts and secured assets immediately on appointment Suspended all trading (other than closing out positions) to minimise any further exposure to clients Forensically imaged all of the Company s computer records, laptops etc Interviewed the director and staff Met with FMA in New Zealand on a regular basis Issued preliminary notices to all unsecured creditors, investors, and landlords 25

26 5 Action taken by the Administrators Completed analysis of data from each trading platform to understand quantity and quantum of investor claims Commenced investigations Investor and creditor correspondence Restructured head office operations Set up 2 dedicated communication channel with clients and creditors Held first creditors meeting of Halifax Investment Services on 5 December

27 6. HALIFAX INVESTMENT SERVICES PTY LTD (ADMINISTRATORS APPOINTED) FIRST CREDITORS MEETING

28 6 HIS First Creditors Meeting Resolutions a. Not to remove the Administrators from office b. To appoint a Committee of Inspection and its members 28

29 7. QUESTIONS

30 7 Questions Frequently Asked Questions 30

31 7 Questions Questions from the floor 31

32 7 Questions Questions via webcast 32

33 8. RESOLUTIONS

34 8 Resolutions Appointment of Administrators Creditors to resolve pursuant to Section 239AN of the Act whether or not: a.to appoint a creditors committee and, if so, to appoint its members b.change the Administrator only if the same resolution also appoints as administrator another person who is not disqualified; and the person named in the resolution as the new administrator has at the meeting tabled a written consent and an interests statement. 34

35 8 Resolutions Creditors Committee Creditors have the right to appoint a Creditors Committee The Creditors Committee is voluntary and are not paid Members of the Creditors Committee must not act to promote their own cause, but rather must act in the interest of the creditors as a whole Consult with and receive reports from the Administrators Assist the Administrators as a sounding board for proposals 35

36 9. CLOSURE OF MEETING

37 9 Closure of meeting Final questions Next steps Report to creditors Extension of the convening period Second (Watershed) creditors meeting Thank you for your attendance 37