margin lenders move to reassure clients

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    Big players in Australia's $36 billion margin lending industry have moved to reassure clients that their assets are safe, The Weekend Australian reports.

    According to the paper, the Commonwealth Bank's CommSec and Bendigo and Adelaide Bank's Leveraged Equities, have released statements distancing themselves from recent financial disasters at Lift Capital, Opes Prime and Tricom Equities.

    "The relationships with a margin lender is no different to the situation with a home loan - the lender can't turf you out unless you are in default," said Leveraged Equities' general manager of margin lending, Eric Blewitt.

    A CBA spokesman said customers' assets were "completely safe"', adding that "in every instance, our clients' holdings belong to the client and are only used as collateral against that client's loan."

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