Have you ever read the risk section of a Margin Lenders T and C’s, I’m fairly certain it doesn’t go into what would happen if the margin lender becomes insolvent. The truth is no one at Opes would be aware of what would happen in an SLA as well, it depends on the circumstances. The fact that Lirim (The twat I like to call him) caused a massive hole in the shortfalls at Opes meant that no one would know what the outcome would be if it went pear shaped. If the company had become insolvent through a much smaller stuffup, chances are the reciever may even have allowed us to pay out our loans and grab our shares, or perhaps 90% of them.. we will never know.. but mate,, legal ownership seems pretty obvious to me. Beneficial ownership is the big grey area. Will be interesting.. but Im not about to crucify the people who worked at Opes about it, apart from the useless directors.

On your third point, I was also a client and I also read the SLA (pre-Feb 2008). I was also aware that legal ownership passed, but legal ownership is very different from beneficial ownership and I was under the impression that beneficial ownership remained with me.

Opes did nothing to explain the real situation either directly or in the FSG. I think the most telling is that the pre Feb 2008 FSG didn’t contain anything about the result of Opes becoming insolvent in its risks section. The post Feb 2008 added a paragraph explaining that risk and what would happen, but Opes never informed me of the new FSG or the changes that were in it.

We will wait and see what happens. Whatever the eventual outcome, it will be interesting.

Firstly what makes you think Opes Prime gave any advice? Having stockbroking license doesnt mean they are full service.

Secondly, could it be that Beconwood were very desperate for some funds in order to acquire another crappy company?

Thirdly, as a former client of OP, I read the SLA and had it explained to me that legal ownership past. But hey I had crappy stocks how was was I going to feed my greed for more of the same.

Fourth – The directors or Beconwood are no doubt sophisicated investors, and I can guarantee you they would have known of the risks involved. For gods sake people, if the market had not gone into meltdown they would have made a bucketload of cash and be throwing praise at Opes. So mate… let it go, I have, people took a risk.. its as simple as that. Find something else to do.

James

CGM Investments Pty Ltd v Chelliah (with corrigendumdated 11 April 2003) [2003] FCA 79 (14 February 2003)