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Travel Weekly > News > Financial review ordered by TCF
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Financial review ordered by TCF

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Published on: 18th May 2012 at 3:27 PM
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The Travel Compensation Fund (TCF) approved the opening of 36 agency branches in the year to March 31, up 80% on the same period in 2011.

It also approved 48 head office openings, up 9%, while terminating the membership of 31 head offices and eight branches, down from 33 and 11 respectively.

The TCF noted that “early 2011 was a very quiet period for industry expansion”.

Figures produced by the licencing body pointed to improved trading. In 2010, almost 400 agents reported a trading loss of more than $10,000 in their mandatory Annual Financial Reports, falling to 228, or 7.8% of TCF participants in 2011.

The value of guarantees held by the TCF also fell, from $84.7 million in March 2011 to $77.7m to March 2012.

Meanwhile, the TCF has ordered a review into the general financial criteria required by participants, starting with ASX-listed companies.

“The criteria has not been reviewed for many years and the first stage of the review will involve an assessment of whether the criteria places an unnecessary burden on the TCF’s ASX-listed participants,” it said.

Listed firms already have “stringent reporting requirements” imposed by ASIC and the ASX, the TCF said.

A second stage of the review will look at the remainder of members.

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