• 8:48PM Saturday Feb 11, 2012

Business

You are here: Home Article

Search businessday:

Search in:

ASIC to probe Lift

April 11, 2008

The corporate watchdog will investigate the collapse of margin lender specialist, Lift Capital Partners Pty Ltd, the minister for superannuation and corporate law, Senator Nick Sherry, said today.

''There's an operational investigation underway,'' Senator Sherry told reporters in Melbourne.
 
''ASIC (the Australian Securities and Investments Commission) will make the detailed public announcements about the aspects of the investigation as it goes forward.''

Unlisted stockbroker Lift Capital has gone into voluntary administration as the fallout from recent market turmoil continues.
The corporate recovery and advisory firm McGrathNicol has been appointed as voluntary administrator following speculation in the last few days that Lift Capital was in trouble.

Lift Capital operates as a margin lender and has about 1,600 clients, with interests predominantly in listed shares and managed funds.

Two weeks ago, stockbroker Opes Prime, which was also involved in margin lending, was placed in receivership and administration after cash and stock movement irregularities were uncovered in six client accounts.

Senator Sherry said there had been significant volatility in global sharemarkets as a result of the sub-prime mortgage crisis and consequent credit squeeze in the United States.

''We've seen some further evidence today of the impact of that with Lift Capital. Lift Capital is a margin lender,'' he said.

Senator Sherry said the Rudd government had taken several steps in regard to transparency and market regulation.
 
The government has announced that it would be transferring the regulation of financial services in the state jurisdictions to the Commonwealth, including areas of margin lending.

The federal government would also be changing the Corporations Act to deal with what was known as ''covered short selling''.
 
''We've already commenced the significant task of re-writing, simplifying the very complex disclosure documentation in financial services. This includes margin lending. It may as well be written in Latin for all that Australian investors can understand at the moment - that's top priority,'' Senator Sherry said.

Asked whether ASIC had sufficient resources to monitor stockbrokers engaged in margin lending, Senator Sherry said he had met with ASIC yesterday to discuss surveillance and enforcement issues.

''ASIC as yet has not requested additional funding. I do know that they have re-allocated resources internally, particularly around events that we have seen in recent weeks and including today, with the investigation that has commenced,'' he said.

''If ASIC requests additional funding, obviously we'll consider that.''

AAP

Join the conversation

You're the only person reading this now. Tell your friends

Related Coverage

Lift goes under

Sydney-based stockbroker Lift Capital has appointed administrators, ...

Top Business articles

  1. Like Dr Who, banks will be back with a new look
  2. Greek government approves debt deal
  3. Visy bookkeeper had jail record
  4. NAB struggles with tech glitch
  5. Tax crackdown sinks companies
  6. More Business articles

Business Topics

CompaniesExpand (28353)

PeopleExpand (15247)

OrganisationsExpand (10156)

TopicsExpand (10025)

Story Tools

More Related Coverage

Lift goes under

Sydney-based stockbroker Lift Capital has appointed administrators, hitting another 1600 investors and tying up stock worth $800m.