Investor compensation reviewed

We're calling for substantial changes to the way in which the National Guarantee Fund is run.
 
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01.National Guarantee Fund needs a nip and tuck

Financial Advice - FoFA - Dec 2011

The Australian government is reviewing the way in which investors are compensated when their stockbroker acts without authority or becomes insolvent.

Making things better for investors

CHOICE has made a submission to the review and is calling for substantial changes to the way in which the National Guarantee Fund is run. The Fund was established in 1987 to provide compensation to investors in specific circumstances, and was funded by payments from the interest on stockbrokers trust accounts. As at June 2010 the NGF had net assets of $110 million.

What CHOICE wants

As well as significant improvements in the promotion of the compensation fund and transparency around how the funds are spent, CHOICE is also calling for changes in the make-up of the board that oversees the NGF to make sure that investor/consumer protection issues are at the forefront. CHOICE is also asking for the funds terms of reference to be updated given that no claims relating to the collapse of Opes Prime were paid.  

 
 

 

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