I saw the question ‘What if a stock broker goes bust?’. I am also interested to know more specifics about this risk. I looked on ASIC's website to see how stock brokers may be regulated. I found a link on ASIC's website to the Stock Brokers and Financial Advisers organization. Their peak body is: http://www.stockbrokers.org.au. They should be able to advise what protections and government guarantees (if any) cover clients of their members and if any particular stock broking firm is a member or not of their body. Of course they are not there for the benefit or interest of customers but they should be able to advise what protections are in place. Maybe ask ASIC if they regulate brokers as deposit takers.
Here’s a bit more on share trading protections. There may be some information regarding stock broker accounts etc as there is a link to updates relating to the collapse of BBY. http://www.asx.com.au/regulation/regulatory-compliance/regulation-australia.htm. Here’s a link to the National Guarantee Fund: http://www.segc.com.au.
This document provides detail of the purview of the NGF: (https://fsi.treasury.gov.au/content/downloads/PubSubs/000192.pdf). The NGF scheme contributes to market confidence in the ASX by providing three significant forms of investor protection A. a mechanism for ensuring a clearing guarantee for ASX markets and contract completion guarantee for clients; B. a mechanism for investors dealing through ASX member organisations (stockbrokers) to claim compensation for the default, fraud or insolvency of a stockbroker in the circumstances set out in the legislation; and C. funding for significant systems development projects, through payments to the Securities Industry Development Account, which have had the effect of reducing transaction risk on the ASX.
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