ASIC wins and Storm Financial faces liquidation
It has been months in the making, but Storm Financial has now officially been closed down.
A decision was made in the Federal Court in Brisbane yesterday to order that Storm Financial be placed into liquidation. The court accepted the Australian Securities and Investments Commission's (ASIC's) argument that it was in the best interests of creditors to wind the company up immediately.
The Federal Court appointed Ivor Worrell and Raj Khatri of Worrells Solvency and Forensic Accountants as liquidators of the group. This firm has been working as administrators of Storm since mid-January this year.
Worrell and Khatri can now begin the process of clawing money out of the remains of the group, which the group’s creditors hope will go some way towards repaying them.
ASIC said it would “work closely with the liquidators to ensure this happens as quickly as possible”.
A statement from the liquidators said it remained “necessary for a comprehensive public examination of all relevant parties to be carried out as soon as possible”.
They said they would make no further comments until a full report has been submitted to creditors.
AUTHOR
Recommended for you
Sequoia Financial Group has announced it is selling off its Informed Investor subsidiary which it acquired in April 2022.
Wealth Data has examined which advice business model has seen the most growth since the start of the year including those that offer holistic advice.
Research conducted by Elixir Consulting and Lonsec has quantified the efficiency gains of using managed accounts in financial advice practices in hours per week saved.
With only one-quarter of advice practices actively seeking feedback from clients, the Financial Advice Association Australia has emphasised why this is a critical tool for client retention.
