ASIC's Storm case to continue
The Storm Financial compensation case brought by the Australian Securities and Investments Commission (ASIC) on behalf of two investors is set to continue, after the Federal Court rejected challenges from the companies involved in the collapse.
In December 2010, ASIC commenced legal proceedings on behalf of Barry and Deanna Doyle against Bank of Queensland, Senrac and Macquarie Bank.
The case was in relation to the alleged breach of contract, contravention of statutory prohibitions against unconscionable conduct, and the banks' liability as linked credit providers of Storm under the Trade Practices Act 1974.
Earlier this year, all three companies asked the court to strike out and dismiss the whole or part of ASIC's statement of claim, which was rejected by Justice Lindsay Foster.
The court has, however, asked ASIC to clarify certain aspects of the claims by filing an amended statement of claim.
These proceedings are separate from other Storm-linked legal cases brought by ASIC, including the civil penalty proceedings against former Storm chief and his wife, Emmanuel and Julie Cassimatis.
AUTHOR
Milana Pokrajac
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.
