Radio I know it seems comsec is doing everyone a favour here but they aren't . When individuals opened an acct with comsec otc cfd they were opening an acct with comsec . When clients who used etrade opened a cfd acct they opened it with MF .
Comsec state they use MF for hedging but accts are held with comsec in their segregated accts . I'd have to read all the pds but I'd guess that any client who wants cash out of the acct should be demanding it now as comsec know what the trades were valued at as they also have live depth . They only hedged through MF which is their problem and not any traders . Read below .
7.4 Client funds All money paid to CommSec by you or a person acting on your behalf, or which is received by CommSec on your behalf, will be held by or on behalf of CommSec in one or more segregated accounts in accordance with the requirements of the Corporations Act 2001 (Cth). It is important to note that holding your money in one or more segregated accounts may not afford you absolute protection. The purpose of segregated accounts is to separate client funds from those of CommSec or any third party holding the funds on CommSec’s behalf. Within the segregated account, all client funds are pooled together, so an individual client balance may not be protected if there is a default in the overall segregated account balance. In order to minimise this risk, CommSec would normally deposit its own company funds into the segregated funds account to cover any client balance shortfall caused by a client default. CommSec reports, where necessary, all transactions in compliance with relevant Australian antimoney laundering and financing of terrorism legislation, as amended from time to time. CommSec is entitled to retain any interest it earns on client money held by CommSec in the segregated accounts it maintains with a bank or approved deposit-taking institution. The rate of interest is determined by the organisations at which the client funds are held.
