SHAREBROKER'S LIABILITY.

Taranaki Daily News, Volume LVII, Issue 1, 20 May 1914, Page 5

SHAREBROKER'S LIABILITY.

NECESSITY FOR AUDITED TRUST FUNDS. By Telegraph—Press Association. Auckland, Last Night. In the course of the ease in which a former member of the Stock Exchange was charged with breaches of the Bankruptcy Act, Mr Hall-Junes, who appeared for the prosecution, said the office which he represented iiad been strenuously endeavoring to secure a regulation whereby all eharebrokers 1 would be compelled* to keep trust accounts, of their clients' money. When it was remembered that solicitors had to- have their trust accounts audited, this was a very reasonable request to make. In reply, the Magistrate said: "I sec no reason why sharebrokers should not be brought into line with solicitors and land agents, and be compelled to keep -i separate trust account into' which all clients' moneys should be paid. That would' mean that in a ease like the present one, so long as the defendant did not mi* bis <wn money with his client-' moneys, no matter what his own per- ' sonal financial position might he, his clients would not suffer, as their tru'l money would be protected by law.