Advisers under the spotlight in possible Great Southern investor legal action
Slater & Gordon has been approached by hundreds of Great Southern investors looking to determine what possible action could be taken against the group, its associated companies and the advisers who recommended investors into Great Southern investments.
The national law firm has commenced an investigation into the viability of class actions on behalf of these investors.
Among the issues being examined are the actions of the representatives of Australian Financial Services Licensees (AFSLs) who advised on Great Southern investments.
The law firm will be examining whether the remuneration paid from the agribusiness to advisers was adequately disclosed to investors. Those who recommended Great Southern investments to clients stood to receive commission payments of 10 per cent of clients’ investments.
Slater & Gordon will also be looking at the role Great Southern Finance (GSF) played in providing debt to people to invest in Great Southern. Slater & Gordon believe there is a possibility that GSF could have known of the limitations of the operations of Great Southern when providing this funding to investors. If it can be proved that this was the case, the loans provided to these investors may be struck off.
The law firm is also looking at the advice given by KPMG to investors regarding the transfer of interests in managed investment schemes offered by the business to those of actual interests in the business, which is now in receivership.
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