Investors in limbo as Halifax Investment Services, run by Gold Coaster Jeff Worboys, placed under administration

THOUSANDS of share investors’ accounts have been frozen after a major online stockbroking firm, run by a well-known Gold Coaster, went into administration.

THOUSANDS of share investors’ accounts have been frozen after major online stockbroking firm Halifax Investment Services went into administration.

The firm, run by Gold Coaster Jeff Worboys from offices in Sydney and Southport, had a vast client base in Australia, New Zealand and China.

Company records show Mr Worboys, who lives at Paradise Waters, held about 40 per cent of the company’s shares when it entered administration.

Fellow local and former director, UK-born Benowa resident Andrew Baxter held about 18 per cent.

Administrators Morgan Kelly, Stewart McCallum and Phil Quinlan of Ferrier Hodgson were appointed to the parent company on Friday and to the related New Zealand operation on Tuesday.

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Halifax Investment Services has gone into administration. Photo: Supplied

Halifax’s trading platforms were disabled without warning for deposits and withdrawals this week as the administrators began to comb through the company’s affairs.

In a statement on the administrator’s website, Mr Kelly said a creditors’ meeting would be held in Sydney next Wednesday.

“The investors are our primary concern at this time,” he said.

“We are conducting an urgent investigation into the business operations and will ensure all stakeholders, creditors, investors and employees, are updated of any developments.”

In 2011, then-managing director of Halifax Mr Baxter said the Southport office had 18 staff and handled online investor accounts worth $120 million.

Former Director of Halifax Investment Services Andrew Baxter.

The administrator had not responded by deadline to the Bulletin’s questions about the current number of investors or the amount of funds in Halifax accounts when the company floundered.

Mr Worboys could not be contacted.

Halifax ran into trouble with ASIC in 2013 after the regulator uncovered flaws in its risk management and compliance framework.

It co-operated with the investigation and agreed to appoint an independent consultant to review its business and develop a plan to rectify the deficiencies which included problems with supervision and monitoring of its representatives, handling of complaints and marketing processes.

Halifax provided broking and investment services through business introductions including domestic and international equities, options, futures and forex.