The administrators of failed stockbroking firm BBY say client losses may be larger than originally thought.
The shortfall in BBY client monies accounts could be $16 million, according to further reconciliation work by KPMG, up from the $10 million KPMG had identified in a report released last week.
"These numbers may change if further information comes to light as a result of ongoing investigations," administrators Stephen Vaughan and Ian Hall said on Thursday.
They have lodged a report with the corporate regulator on the outcome of their investigations to date into BBY's main operating entity.
The report to the Australian Securities and Investments Commission is confidential and is not available to creditors.
BBY controlled more than $2 billion in funds, and was placed in administration in May.
The administrators have found indications of possible misuse of client trust funds, and evidence that BBY's financial records were not up to standard.
In their first report to creditors, the administrators said unsecured creditors are likely to get between nothing and 24 cents in the dollar in return, should BBY companies be liquidated.
The brokerage firm failed because of poor governance, inadequate risk management and capital, trading losses and an inability of management to foreshadow and respond to adverse events and margin calls, KPMG has said.
A second meeting of creditors is to be held on June 22.
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