What is Securities Exchanges Guarantee Corporation Limited (SEGC)?
SEGC is a company limited by guarantee which was incorporated in 1987 to be the trustee of the National Guarantee Fund (NGF). The sole member of SEGC is ASX Limited.
SEGC administers the NGF in accordance with Division 4 of Part 7.5 of the Corporations Act 2001 and the Corporations Regulations 2001 and holds the assets of the NGF in trust for the purposes set out in the legislation.
The SEGC Board is made up of directors experienced in commercial matters involving the securities industry. Further information about the board of directors is given in the Annual Report.
What is the National Guarantee Fund ?
The National Guarantee Fund is a compensation fund available to meet certain claims which arise from dealings with participants of ASX and, in limited circumstances, participants of ASX Clear Pty Limited (ASX Clear). Further information about the types of claims which can be made is given in the Annual Report and NGF Information Booklet.
When the six State stock exchanges merged in 1987 to form the national ASX, the assets of the fidelity funds of those State exchanges were also merged to form the NGF. Up until March 2005, SEGC provided investor compensation and clearing and settlement support in the circumstances set out in Part 7.5 of the Corporations Act. On 31 March 2005, the NGF was split by a payment out of the NGF to ASX Clear which then assumed sole responsibility for clearing counterparty risk. As a result, the NGF now only covers investor compensation in relation to the ASX.
Payments from the NGF may only be made in the circumstances specified in the Corporations Regulations. Such payments include the costs of investigating and settling claims, and the administration costs of SEGC and the NGF.
SEGC Board of Directors
- Nancy Milne, Chair
- Susan Doyle
- Lynn Ralph
- Ian McGaw (ASX Nominated Director)
- Peter Warne (ASX Nominated Director)
Information about making a claim for compensation from the National Guarantee Fund can be found here.
SEGC has published a Notice Calling for Claims against the SEGC (subregulation 7.5.70(1)). Subdivision 4.9 claims must be lodged on or before 11 June 2016. To see the Notice please click here.
For the latest BBY Claims Update, please click here.
The Board of SEGC has determined a new minimum amount for the NGF of $100 million. The new minimum amount came into force on approval by the Minister on 3 November 2015.