underwriter

Unsure but I assume this is our underwriter and wonder if has contributed to sell off over the last few months.

Maybe dodged a bullet if all gone.

Cheers



One of the country's biggest intermediary brokers, Melbourne-based Sonray Capital, collapsed at 11pm yesterday, freezing 3000 client accounts.

Ferrier Hodgson has been appointed as the administrators and will meet the corporate watchdog Australian Securities & Investments Commission to investigate the reason for the collapse.

Have you been affected by the freeze? Email [email protected]
Sonray is a so-called introduction brokerage, specialising in online and advisory services in global equities, futures, foreign exchange and other investments, according to a statement from Ferrier Hodgson.

Ferrier was unable to confirm how much money had been frozen. It did say that the clientele was made up primarily of retail investors.

One difficulty Ferrier has is estimating the number of investors caught up in Sonray's woes. While about 3000 accounts have been frozen, some of them may be undisclosed broker accounts - effectively omnibus holdings potentially affecting many more individuals, the administrators said.

Melbourne-based

Sonray's collapse is the latest in a string of Melbourne-based financial service firms to go under. During the global financial crisis, Opes Prime, Chimaera's Primebroker and Lift Capital all failed, hitting client accounts worth more than $1 billion.

The Sonray business has operated since 2003 and employs about 70 people in offices in Melbourne and the Gold Coast.

The companies affected include Sonray Capital Markets Pty Ltd, Sonray Capital Markets (Qld) Pty Ltd, Sonray Capital Markets Nominees Pty Ltd and Sonray Advisory Pty Ltd.

Sources said the group had been talking to Saxo Bank about a buyout. Talks collapsed and administrators were appointed late last night.

The company is understood to have had big expenses topping $10.5 million in 2009 on revenue of just $8 million, leaving a loss of more than $2 million. It also occupied pricey offices in both centres.

Sonray is a big user of other broker platforms and specialised in equities as well as over-the-counter products including contracts for difference (CFDs), options, futures and exchange traded funds. It was one of the first companies in Australia to provide advice on CFDs, investment tools that are banned in the United States.

Sonray's tentacles spread far, offering retail and wholesale financial services advice as well as initial public offers. While not engaged in market transactions itself, Sonray is regulated by ASIC.

Ferrier partner George Georges said a meeting for creditors is planned next week. The administrators will let clients know what is happening to their accounts ''over the next few days'', the statement said.

[email protected]