Genesys reimbursed for Solicitors Trust millions

Genesys Wealth Advisers has won back $3 million compensation that it paid under the guise of Garrisons Financial Planning six years ago to clients burnt by the collapse of several approved solicitor-run mortgage schemes.

In 1999 Garrisons, which merged with Associated Planners late last year to form Genesys Wealth Advisers, paid out the millions to hundreds of clients that was lost after several Solicitors First Mortgage Schemes failed.

The Mortgage schemes were approved products which Garrisons financial planners frequently recommended to their clients.

The courts later revealed that the schemes collapsed thanks to fraud and mismanagement on the part of the solicitors who ran the schemes.

The High Court last Friday disallowed a leave to appeal initiated by Solicitors Trust - who provided financial support to the solicitor firms who backed the now defunct schemes - effectively transferring full legal responsibility for the collapse of the mortgage schemes onto the solicitor firms involved and the Solicitors Trust.

Genesys deputy managing director and former Garrisons managing director Jim McKay said the bill was footed by Garrisons in 1999 because it was in their client’s best interest to receive the compensation immediately, instead of having to wait out what amounted to be six years of legal wrangling.

“Our decision to look after our clients by putting their interests first has been vindicated by the court,” said McKay.