ASIC reaches another Westpoint settlement
A group of Westpoint investors is likely to receive $1.39 million in compensation from Strategic Joint Partners as the Australian Securities and Investments Commission (ASIC) reaches another settlement regarding the failed investment scheme.
Queensland-based Strategic Joint Partners, however, did not admit to any liability with regards to its clients' losses, while the settlement remains subject to court approval.
In 2008, ASIC commenced Federal Court proceedings against Strategic Joint Partners following concerns the firm had been negligent in providing financial advice to its clients, breaching the conditions of its Australian financial services licence.
The Court has recently ordered the regulator to contact Strategic Joint Partners clients and notify them of the compensation they are likely to receive.
Before making the final decision, the Federal Court will consider all ASIC, Strategic Joint Partners and investor submissions as to why the settlement should or should not be approved.
Westpoint investors had $388 million in outstanding total capital invested as at January 2006 when the group collapsed.
To date, ASIC had successfully settled a total of $82.5 million in claims against certain Westpoint investors and KPMG ($57 million), Professional Investment Services ($5.9 million) and State Trustees ($13.5 million) among others.
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