Brokerage company Sonray Capital Markets, which specialised in derivative trading, has collapsed, with approximately 3,000 client accounts suspended.
Ferrier Hodgson partners George Georges and John Lindholm will act as voluntary administrators, and have said they will meet with the Australian Securities and Investments Commission to determine the circumstances of the collapse.
“We understand the concerns of investors at this difficult time and ask for their patience while we carry out the investigation,” Georges said in a statement.
“Our job will be to provide creditors with clarity about what happened to Sonray and we will do all we can to keep creditors informed about any developments.”
According to Georges, a creditors meeting will be held in the next week, and he will contact them all over the next few days to provide some more details about what is happening to their accounts.
It is not yet known how much money was contained in the 3,000 suspended accounts, however reports suggest the funds mostly belong to retail investors, especially retirees who manage their own super.
Sonray was formed in 2003 by derivatives expert Russell Johnson, along with his brother-in-law, Scott Murray. Its collapse comes after a number of other financial groups including Opes Prime, fell during the onset of the financial crisis.
The company also offered products known as contracts for difference, which have attracted particular attention from regulators due to the level of risk they pose to investors.
The firm currently employs about 70 people in both Melbourne and the Gold Coast.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
