Laugh and a half isn't it? Some snippets from Sonray's PDS in relation to Contracts for Difference. Pretty similar to other PDS I've read by different providers. Not involved with this fiasco just always curious why people get involved in high octane rocket fuel.
4 Nature of Advice offered by Sonray
Sonray holds an AFSL Number 231151 and is authorised to provide the following services:
• to provide general and/or personal financial product advice in relation to, and to deal in,:
(i) deposit and payment products;
(ii) derivatives;
(iii) foreign exchange contracts;
(iv) debentures, stocks or bonds issued by a government;
(v) managed investment schemes including investor directed portfolio services;
(vi) securities; and
(vii) miscellaneous financial investment products limited to managed investment warrants and Managed Discretionary Account (MDA) services; and
• to make a market in derivatives; and
• to underwrite interests in managed investment schemes and issues of securities; and
• to provide certain custodial services;
to retail and wholesale clients.
[And that is all the License does folks and nothing more]
In general, we provide general advice and we neither collect, nor take into consideration, information regarding your financial circumstances and needs, and we recommend that you take all reasonable steps to fully understand the outcomes of specific derivatives products and strategies adopted in relation to utilising the general information provided by Sonray. You should obtain financial, legal, taxation and other professional advice. [And against that warning and recommendation did you? No? Oh well bad luck.]
Sonray’s powers in the event of default include the power to close out
positions and terminate your account
Sonray has extensive powers under the terms of the Application Terms & Condition 23 to take action in response to a range of default events. Sonray may terminate your account, and close out all or any of your CFD positions, including cancelling any outstanding orders. Further we may satisfy any obligation you have to Sonray out of any property, money or security belonging to you in Sonray’s custody.[Tch, tch. Nasty.]
6 What is a CFD
A CFD is an over-the-counter derivative product comprising an agreement under which one party is entitled to be paid an amount of money (profit), or has to pay an amount of money (loss) resulting from movements in the price or value of an underlying instrument or security (without actually owning that underlying instrument or security ) [And despite this some actually thought they really owned shares? Wow!]. This transaction concludes with the parties settling the difference between the purchase price and the sale price.
You do not trade through an Exchange and are not afforded the protections normally associated with exchange-traded derivatives, such as guarantee arrangements.
8. Sonray’s position in relation to CFDs
When dealing in CFDs, as with all over-the-counter derivatives, Sonray is a market maker, not a broker.
10.1 Dividends
If you hold an open long CFD position at the close of business on the day prior to the ex-dividend date to the underlying reference security, you will receive an amount equal to the ordinary cash dividend on that reference security (excluding imputation or franking credits). [So, Carlo, if you went for CFD's, you did NOT receive dividends but a cash equivalent AND you dipped out on the franking credits.]
27. Client Monies
All money deposited into your account by you or by a person acting on your behalf, or which is received by Sonray on your behalf, will be held by Sonray in one or more segregated accounts it must maintain pursuant to the Corporations Act. Please note that individual client accounts are not separated from each other, but may be co-mingled into one segregated account (which is separate to Sonray’s monies/assets). It is important to note that holding your money in such segregated account may not afford you absolute protection, and the purpose of the segregated account is to separate Client monies from Sonray monies. All Client monies are pooled together within the segregated account, therefore an individual Client’s balance may not be protected if there is a default by another Client that causes a loss to the overall segregated account balance. In order to minimise this risk, Sonray may use its own company funds to cover any Client balance shortfall that may be caused by a Client default in the short term. If there is a deficit in the segregated account and in the unlikely [Ho, ho, ho] event that Sonray becomes insolvent before it makes up the deficit in the segregated account, then you will be an unsecured creditor of Sonray in relation to the balance of any monies owing to you from the segregated account. [Well, you cannot say you were not warned.]
Have fun fighting the courts and other various parties attempting to get your money back. You really do need to enjoy litigation to undertake that task.
4 Nature of Advice offered by Sonray
Sonray holds an AFSL Number 231151 and is authorised to provide the following services:
• to provide general and/or personal financial product advice in relation to, and to deal in,:
(i) deposit and payment products;
(ii) derivatives;
(iii) foreign exchange contracts;
(iv) debentures, stocks or bonds issued by a government;
(v) managed investment schemes including investor directed portfolio services;
(vi) securities; and
(vii) miscellaneous financial investment products limited to managed investment warrants and Managed Discretionary Account (MDA) services; and
• to make a market in derivatives; and
• to underwrite interests in managed investment schemes and issues of securities; and
• to provide certain custodial services;
to retail and wholesale clients.
[And that is all the License does folks and nothing more]
In general, we provide general advice and we neither collect, nor take into consideration, information regarding your financial circumstances and needs, and we recommend that you take all reasonable steps to fully understand the outcomes of specific derivatives products and strategies adopted in relation to utilising the general information provided by Sonray. You should obtain financial, legal, taxation and other professional advice. [And against that warning and recommendation did you? No? Oh well bad luck.]
Sonray’s powers in the event of default include the power to close out
positions and terminate your account
Sonray has extensive powers under the terms of the Application Terms & Condition 23 to take action in response to a range of default events. Sonray may terminate your account, and close out all or any of your CFD positions, including cancelling any outstanding orders. Further we may satisfy any obligation you have to Sonray out of any property, money or security belonging to you in Sonray’s custody.[Tch, tch. Nasty.]
6 What is a CFD
A CFD is an over-the-counter derivative product comprising an agreement under which one party is entitled to be paid an amount of money (profit), or has to pay an amount of money (loss) resulting from movements in the price or value of an underlying instrument or security (without actually owning that underlying instrument or security ) [And despite this some actually thought they really owned shares? Wow!]. This transaction concludes with the parties settling the difference between the purchase price and the sale price.
You do not trade through an Exchange and are not afforded the protections normally associated with exchange-traded derivatives, such as guarantee arrangements.
8. Sonray’s position in relation to CFDs
When dealing in CFDs, as with all over-the-counter derivatives, Sonray is a market maker, not a broker.
10.1 Dividends
If you hold an open long CFD position at the close of business on the day prior to the ex-dividend date to the underlying reference security, you will receive an amount equal to the ordinary cash dividend on that reference security (excluding imputation or franking credits). [So, Carlo, if you went for CFD's, you did NOT receive dividends but a cash equivalent AND you dipped out on the franking credits.]
27. Client Monies
All money deposited into your account by you or by a person acting on your behalf, or which is received by Sonray on your behalf, will be held by Sonray in one or more segregated accounts it must maintain pursuant to the Corporations Act. Please note that individual client accounts are not separated from each other, but may be co-mingled into one segregated account (which is separate to Sonray’s monies/assets). It is important to note that holding your money in such segregated account may not afford you absolute protection, and the purpose of the segregated account is to separate Client monies from Sonray monies. All Client monies are pooled together within the segregated account, therefore an individual Client’s balance may not be protected if there is a default by another Client that causes a loss to the overall segregated account balance. In order to minimise this risk, Sonray may use its own company funds to cover any Client balance shortfall that may be caused by a Client default in the short term. If there is a deficit in the segregated account and in the unlikely [Ho, ho, ho] event that Sonray becomes insolvent before it makes up the deficit in the segregated account, then you will be an unsecured creditor of Sonray in relation to the balance of any monies owing to you from the segregated account. [Well, you cannot say you were not warned.]
Have fun fighting the courts and other various parties attempting to get your money back. You really do need to enjoy litigation to undertake that task.
