Thousands have their cash frozen after collapse of Banksia Financial Group

RETIREES, schools and sporting clubs are in shock and fearful about the fate of their investments following the collapse of Banksia Securities.

Thousands of people hundreds of millions of dollars in losses after the shock collapse of Banksia Financial Group. Receivers McGrathNicol took charge of the non-bank financial firm, based in Kyabram in central Victoria, and froze investments on Thursday after the Banksia board found the company faced insolvency.
Questions are being asked of government regulator the Australian Security and Investment Commission over what actions it took prior to the $660 million collapse of the Banksia Financial Group.
ASIC was allegedly informed about the precarious position of Banksia, and a subsidiary Statewide Secured Investments 18 months ago, according to NSW property developer David Hawkins who was involved in litigation with the firm.

http://m.perthnow.com.au/business/thousands-of-victorians-have-their-cash-frozen-after-collapse-of-banksia-financial-group/story-e6frg2qc-1226503824848