| Appointment type | Liquidation |
| Appointee | Stephen Vaughan |
| Entities in Liquidation 22 June 2015 | BBY Holdings Pty Ltd BBY Limited Broker Services Australia Pty Ltd BBY Advisory Services Pty Ltd |
| Entities in Liquidation 8 October 2015 | BBY Nominees Pty Ltd |
Entities subject to DOCA | SmarTrader Limited BBY Hometrader Pty Ltd |
| Administrations ended 15 October 2015 | BBY Protection Nominees Pty Ltd Options Research Pty Ltd Tilbia Nominees Pty Ltd |
Background information
This website was refreshed in 2025. The website previously contained a large volume of documents relating to Court direction proceedings relating to client entitlements between 2015 and 2018 as well as some subsequent proceedings. These are no longer required to be on the website and have been removed.
Key reports and other documents, detailing the chronology and conduct of the external administrations remain on the website under Communications.
BBY Limited (BBYL) was formerly the largest independent stockbroker in Australia and New Zealand before its collapse in May 2015, when 10 group companies were placed into voluntary administration.
BBYL was placed into liquidation on 22 June 2015, and Stephen Vaughan and Ian Hall of KPMG became the Liquidators. Ian Hall retired as one of the Liquidators on 31 December 2021.
Receivers and Managers from PPB were appointed on 18 May 2015 over 3 BBY companies, BBYH, BBYL and BBYAS on behalf of St George Bank, a secured creditor. On 30 June 2018, St George Bank appointed replacement Receivers and Managers from KordaMentha.
Five of the above companies have since been deregistered. The liquidations of BBYL and the remaining four subsidiaries are expected to be concluded in late 2026.
At the time of the BBY collapse there were approximately 6,000 former clients of BBYL with $65.5 million in claims to cash held in trust and assets held with counterparties.
The Securities Exchanges Guarantee Corporation Limited, the trustee of the National Guarantee Fund met certain entitlements of former clients. Further information can be found at Securities Exchanges Guarantee Corporation.
The value of client assets ultimately realised was approximately $44.9 million and the estimated shortfall of assets against client claims is $20.6 million before costs of investigations, recoveries, Court directions, adjudication of claims, administration and distributions.
There have been several distributions to former clients of BBYL in respect of client monies and recoveries from counterparties during the liquidation, including:
- In July 2017, distributions in respect of Erroneous Withdrawals and Erroneous Deposits in accordance with earlier orders of the Court.
- In September 2020, the first general distribution to clients in other product lines, representing approximately 85% of the total estimated return.
- In late 2020, to former clients with in specie claims for the return of assets in respect of the IB product line administered by Interactive Brokers.
- On 29 April 2022, the final general distribution to clients in Equities, ETO, IB and Pooled (Futures, FX, Saxo, Other) product lines was declared and paid.
On 1 June 2023 the Liquidator remitted remaining unclaimed BBYL distributions to the Australian Securities & Investments Commission (ASIC). The Liquidators are no longer in control of any monies owed to former clients of BBYL and no further distributions will be made by the Liquidators.
Any former clients of BBY who have not previously claimed or received their distribution can identify their claim by conducting an Unclaimed Money Search and lodging a claim with ASIC. General guidance on how to conduct a search and/or lodge a claim with ASIC are found on the same page.
The BBYL voluntary administration and liquidation has been a complex winding up and there has been a large volume of information presented in the Court directions proceedings and reports prepared by the Liquidators over a number of years.
These investigations supported several recovery actions on behalf of creditors.
The Liquidators also reported various findings in relation to possible offences and misconduct to the Australian Securities & Investments Commission (ASIC).
A Liquidators report (PDF 1.3MB) to former clients and creditors of BBY Limited was published on 1 April 2022. This including a summary of findings from the Liquidators' investigations into the affairs of the BBY group prior to its collapse and the reasons for shortfalls in client funds.
ASIC has conducted various enforcement actions including banning and prosecutions. Some of these are ongoing. Further information can be found at BBY Ltd | ASIC.
Whilst former clients have recovered a portion of their trust entitlements, no funds are available for any return to creditors in relation to non-trust entitlements (e.g., such as secured creditor shortfalls or trade creditors).
BBY Nominees Pty Ltd was a subsidiary of BBYL. BBYN acted as a nominated custodian for certain clients of the BBY group.
As part of this role, BBYN held an interests in shares in Linc Energy Limited on behalf of certain clients of BBYL, including former Linc Energy employees (Underlying Shareholders), via an account operated by BBYL on a white label online trading platform operated by Interactive Brokers LLC.
Linc Energy Limited was an Australian energy company based in Brisbane, QLD. It was listed on the Australian Stock Exchange until 2013 when it listed on the Singaporean Stock Exchange (SGX). It was placed into voluntary administration in April 2016 and into liquidation in May 2016. LE was delisted from the SGX in 2020.
BBYN received distributions from the BBYL liquidation in respect of entitlements associated with accounts on the IB platform held on behalf of Underlying Shareholders of Linc Energy Limited.
The net proceeds of these distributions, after costs, are available for distribution to Underlying Shareholders. The Liquidator intends to issue a notice to the Underlying Shareholders in the near future regarding entitlements and how to submit claims. A copy of the notice will be published on this website.
Communications
Information and circulars for creditors.
FAQs
On 17 May 2015 Stephen Vaughan and Ian Hall of KPMG were appointed, pursuant to section 436A of the Corporations Act, as Administrators of ten BBY companies, listed below, by their directors, following resolutions that each company is likely to become insolvent at some future time:
- BBY Holdings Pty Limited (Receivers and Managers Appointed) ACN 075 187 432
- BBY Limited (Receivers and Managers Appointed) ACN 006 707 777
- BBY Advisory Services Pty Ltd (Receivers and Managers Appointed) ACN 102 761 008
- Broker Services Australia Pty Ltd ACN 074 976 364
- BBY Nominees Pty Ltd ACN 007 001 443
- BBY Protection Nominees Pty Ltd ACN 007 001 710
- Options Research Pty Ltd ACN 006 770 627
- Tilbia Nominees Pty Ltd ACN 007 001 578
- SmarTrader Limited ACN 115 752 102
- BBY HomeTrader Pty Ltd ACN 134 838 207
Following the appointment of Administrators on 17 May 2015, St George Bank appointed Receivers & Managers from PPB Advisory on 18 May 2015 and took possession of the business and assets to recover its secured debt.
ASX Clear, the ASX clearing house for all shares, structured products, warrants and ASX Equity Derivatives, declared an event of default and BBY’s participation in the ASX market, ASX Clear and Austraclear (the settlement facility used by BBY for cash settlements) was suspended.
The Australian Securities and Investments Commission suspended the Australian financial services licences (AFSLs) held by BBY, BAS and STL. BBY effectively ceased trading shortly after the Receivers’ appointment.
ASX Clear carried out a process to close out open derivatives positions and unsettled cash market transactions other than open derivatives positions transferred to another participant or which proceeded to expiry. In some cases ASX Clear liquidated clients’ non-cash collateral to recover associated costs. ASX’s web page refers former clients with losses to the National Guarantee Fund.
The Receivers attended to various requests for transfers to other brokers of CHESS sponsored holdings (HINs), in conjunction with settling of any client debts, as well as transferring any other remaining open positions.
The ASX have also responded to requests from the Holders of financial products on the CHESS Subregister controlled by BBY in its capacity as Sponsoring Participant to effect a change of Controlling Participant or convert holdings to Issuer Sponsored Holdings.
Other counterparties have also chosen to close out positions in relation to futures and FX.
Support
ASIC Insolvency material
The Australian Securities & Investments Commission (ASIC) provides resources on insolvency for directors, practitioners, employees, creditors and investors.
Visit the ASIC website to find out more.
Fair Entitlements Guarantee (FEG)
You may be eligible for FEG assistance. General information for claimants can be found here:
https://www.dewr.gov.au/fair-entitlements-guarantee.
Beyond Blue
beyondblue offers some useful resources for people struggling with the emotional impact of financial distress. The beyondblue Support Service provides confidential, one-on-one counselling with a trained mental health professional.
Phone: 1300 22 4636
Lifeline
Lifeline offers phone crisis counselling for people who are experiencing financial and emotional hardship.
Phone: 13 11 14 Australia-wide
Online crisis support chat (7:00pm to 4:00am daily)
