Opes collapse fallout brutal for clients

I am still curious as to the exact terms that they assumed legal ownership.

Merely holding title as security for a loan usually means the assets are held on trust.

Similarly if the shareholders "lent" their assets which are at all times identified as theirs as beneficial owners then again you might argue these assets are held in trust if it was on the understanding that they would be not ventured in the brokers business.

However, if beneficial ownership has changed when the broker acquires the shares then the original shareholders might have disposed of their shares and are subject to CGT event A1 at the time. Although if they are in an arrangement whereby they "lend" the shares to a broker who ventures them on the understabding they will be returned then there is a special exemption from a CGT event.

It would be very unfair if these shareholders are deemed to have disposed of their assets for a capital gain in the past rising market (and overdue interest) - and then get stuck with a later capital loss that they have no other gains to set off against in the current depressed market !!!

Cheers,

Rob

 

Navra clients have NOT invested with ABN AMRO!!

They are merely a 'lender' in issuing the warrants. Navra clients' money is held in direct shares and cash, owned by the individual investors themselves and held in an external trust. (RBC)

These shares are NOT lent, margined or in any way encumbered.

Even if an individual investor chooses to gear their shares by way of a margin loan or warrant etc, this can in no way effect the shares or units of another investor.

The Navra Group itself has no control over the shares or cash held by the external trustee other than to issue trading instructions. (Whether to buy or sell) This is all covered in full in the PDS . . . please read

You are safe with Navra!

 

Its good to be safe with Navra. I am fully invested.

I hope I'm not construed as creating unnessasary concern. I think clarification and explaination are the best way. I'm not looking at warrants so I havn't read the PDS.

Thanks for your reply Steve.

My original question was about ABN Amro rather than about Navra. It may well be an ill informed question as I am definately a novice when it comes to this sort of stuff.

Example:

What would have happened to an investor who had a margin loan with Opes Prime and used the funds to buy Navra units or any other managed fund. Surley they would be troubled. Its not about Navra, its about the lender.

Once again its a hypothetical as I am with St. George.

MJK

 

Recently added to the Macquarie Prime website:

MQ Prime - Who has legal and beneficial ownership of shares held in an MQ Prime facility?

If you buy shares through, or transfer shares into, the MQ Prime Facility, you hold the shares in your own HIN. So, you have legal and beneficial ownership of the shares as long as you continue to meet your obligations under the facility.

MQ Prime – Can Macquarie borrow the stock I hold in my MQ Prime facility or short sell it?

No. Macquarie has no right to borrow your stock in order to short sell it or lend it to a 3rd party.

 

Why not review lending practices in general ?

Why not google what the banks did to Farmers with foreign currency loans a couple of decades ago - that from the pillars of our financial society.

What happened to the Financial Services Reform ? A whimpy attemp at disclosure plus carving out the market for licensed Financial Planners who used to be door-to-door dodgy life insurance salesmen.

No offence to the later Planners who joined after doing their hard graft of 40 hours study for their PS146.

The whole pretence of "freedom to contract" has shifted the risk onto the investor in an unregulated market, just demanding the fine print is a bit bolder is just not good enough. There is too much family and superannuation wealth at risk.

Nobody wants to give the regulators any teeth, that is often why they do not think it worth pursuing any cases.

Also, the regulators and the offending institutions are populated by ex-colleagues and old school buddies.

Time for me to climb off my soapbox and hide behind it before the replies start flying from our Financial Brethren.

Cheers,

Rob