KPMG challenges ASIC over Westpoint
Accountancy group KPMG has initiated a High Court challenge against the Australian Securities and Investments Commission (ASIC) relating to compensation for Westpoint investors.
KPMG is seeking a declaration that section 50 of the ASIC Act, which empowers the regulator to carry on a proceeding in the name of a company, is unconstitutional.
ASIC has said it would vigorously defend its position.
The regulator said that the KPMG action, if successful, would mean ASIC was not empowered to continue compensation action against KPMG for the benefit of Westpoint investors.
ASIC began action against KPMG in October 2004 over its auditing of companies in the Westpoint Group. The action claims compensation in the order of $200 million.
Recommended for you
As Insignia Financial formally completes the separation of MLC from NAB, Money Management reflects back on how the acquisition came to be and where Insignia sees MLC going forward.
The Financial Services Council has made multiple recommendations to ASIC regarding exercising its powers around AFSLs to mitigate the risk of failing companies including greater capital requirements.
Advice licensee Centrepoint Alliance has announced a service partnership with self-managed superannuation fund solution provider SuperConcepts.
The Compensation Scheme of Last Resort says it has received over 200 claims for compensation relating to personal financial advice since its inception and detailed the specific recurring issues being raised by claimants.
