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Silver lining in $660m Banksia collapse

by Staff Reporter7 minute read
The Adviser

Banksia Securities creditors have recouped most of their money in the two years since the firm collapsed.

The commercial non-bank lender entered receivership in August 2012 with debts of more than $660 million.

ASIC announced yesterday that creditors had received an average of 80 cents in the dollar.

The regulator also announced that it had cancelled the AFS licence of Banksia Mortgages, which is a sister company of Banksia Securities.

Banksia Securities had been financially supporting Banksia Mortgages since the collapse.

ASIC revealed that Banksia Mortgages had disclosed a breach of its AFS licensee financial requirements in April 2013.

However, ASIC declined to take action at the time in order to maximise the return to creditors, according to the regulator.

ASIC said it is continuing to investigate Banksia’s collapse.

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