ASIC succeeds in application to appoint a receiver to former OTC derivatives issuer Berndale

ASIC has successfully applied to the Federal Court of Australia for orders to appoint receivers and managers of former OTC derivatives issuer, Berndale Capital Securities Pty Ltd (Berndale) and related companies, Berndale Capital Securities Management Pty Ltd and Algoplus Pty Ltd.

Ms Rachel Burdett-Baker and Mr Bruno Secatore, of Cor Cordis, Melbourne, have been appointed to act as joint and several receivers.

ASIC sought the appointment of receivers due to concerns about Berndale’s financial records, its handling of client monies, the adequacy of its client money reconciliation reports and Berndale’s client monies purportedly being held outside of Australian authorised deposit-taking institutions, in breach of legal requirements.

Berndale, its related parties, and ASIC appeared in the Federal Court, Melbourne on 18 April 2019. The interim application follows ASIC’s initial application and orders made on 5, 13 and 19 December 2018 (18-390MR).

ASIC’s investigation is continuing.

The proceeding before the Court is ongoing. The receivers are required to report back to the Court concerning the affairs of Berndale by 31 May 2019.

Background

Berndale Capital Securities Pty Ltd (ACN 113 616 032) was an OTC derivatives Australian financial services licence holder until 22 November 2018 when its licence was cancelled (18-363MR).

Berndale Capital Securities Management Pty Ltd (ACN 606 118 736) and Algoplus Pty Ltd (ACN 605 329 575) were each former authorised representatives of Berndale. ASIC alleges that the financial affairs of each company are extensively intermingled with the financial affairs of Berndale.

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