Collapsed stockbroking firm Halifax Investment Services, run by Gold Coaster Jeff Worboys, has financial services licence suspended

A stockbroking firm run by a Gold Coast man, which has had hundreds of millions of dollars of its investors’ funds frozen, has now had its licence suspended.

THE corporate watchdog has acted to suspend the financial licence of Halifax Investment Services, which is run by Gold Coast man Jeff Worboys.

The fund had more than 12,000 trading accounts belonging to more than 10,000 clients in three countries when it collapsed in November last year after a review found a shortfall in client funds.

Last month it was revealed that $211 million in investor funds will remain frozen until well into this year after the Federal Court granted the administrator’s request for an extension of time.

This afternoon the Australian Securities and Investments Commission said it has suspended Halifax’s licence until 2020.

However, the terms of the licence suspension allows the Halifax licence to remain in effect for certain purposes.

Jeff Worboys is pictured with Pat Worboys at the opening of Sotheby's International Realty, Main Beach. Picture: Regina King

They are to ensure Halifax clients continue to have access to an external dispute resolution scheme, Halifax continues to have arrangements for compensating retail clients, including the holding of professional indemnity insurance cover; and to allow for the termination of existing arrangements with clients of Halifax.

Last month the Bulletin reported that administrator said while $211 million had been invested with Halifax, the company only held cash and securities of $190-$200 million, leaving a shortfall of up to $20 million.

Former director and current investor in Halifax Investment Services Andrew Baxter.

They had been unable to account for the missing millions and said the deficit could swell as more information is uncovered.

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Creditors heard Halifax’s sole director, Mr Worboys, had surrendered his passport to the administrators Ferrier Hodgson, who were in “daily contact” with corporate regulator ASIC and its New Zealand counterpart.

The Federal Court granted an application from Ferrier Hodgson’s Morgan Kelly, Phil Quinlan and Stewart McCallum, orders extending the convening period for the watershed meeting to March 29.

Mr Kelly said the extension was crucial.

“This extension gives us time to resolve the legal complexities around guaranteeing all funds and assets are matched and segregated correctly, this process will require directions and orders from the Court,” he said in a statement.

“We are also looking at dealing with some investors sooner and we will resolve these issues as quickly as possible.

“All investor accounts remain frozen until our investigations into what investors are owed and how much is available for investors are complete,” he said.