Loo, in the matter of Halifax Investment Services Pty Ltd (in liquidation) v Quinlan (Liquidator) [2021] FCAFC 186

Federal Court of Australia

Loo, in the matter of Halifax Investment Services Pty Ltd (in liquidation) v Quinlan (Liquidator) [2021] FCAFC 186 Appeal from: Kelly (Liquidator), in the matter of Halifax Investment Services Pty Ltd (in liquidation) v Loo [2021] FCA 531

File number: NSD 564 of 2021

Judgment of: MIDDLETON, BEACH AND MOSHINSKY JJ

Date of judgment: 26 October 2021

Catchwords: CORPORATIONS – financial services and markets – where corporation (Halifax AU) holding an Australian Financial Services Licence went into administration and, subsequently, liquidation – where liquidators of Halifax AU applied to the Court for directions and judicial advice as to a number of questions relating to the company and a subsidiary (Halifax NZ) – where there was commingling between Halifax AU accounts, between Halifax NZ accounts, and between accounts of Halifax AU and Halifax NZ – where there was a deficiency in the funds held by Halifax AU and Halifax NZ to meet client entitlements – where the moneys paid to Halifax AU by clients were held on trust for the clients' benefit – where there was a single deficient mixed fund as at the date of administration – where the administrators and then the liquidators permitted clients to maintain open positions – whether the date for valuation of client entitlements should be the date of administration or a date as close as possible to the date of distribution – where the primary judge held that it should be the date of administration – whether primary judge erred in so holding – appeal dismissed

Legislation: Corporations Act 2001 (Cth), ss 981A, 981B, 981F, 981H, Sch 2 – Insolvency Practice Schedule (Corporations), s 90-15 Corporations Regulations 2001 (Cth), reg 7.8.03