QBE settles $2.3 million Westpoint PI claim
Insurer QBE, as the professional indemnity insurer for collapsed Glenhurst Corporation, has emerged as the fifth and latest company to reach agreement with the Australian Securities and Investments Commission (ASIC) on compensation for Westpoint investors.
The regulator announced late last week that QBE had agreed to a $2.5 million settlement on behalf of clients who had invested in Westpoint products as a result of advice provided by Glenhurst Corporation.
The settlement represents the conclusion of a class action initiated by ASIC in August 2008 against Glenhurst alleging that in providing advice to clients who invested in certain financial products issued by the relevant companies in the failed Westpoint group, it was negligent, engaged in misleading and deceptive conduct and acted in breach of the conditions of its Australian Financial Services Licence.
Glenhurst, which is now in liquidation, was one of seven AFSL holders against which ASIC began proceedings with respect to Westpoint.
AUTHOR
Mike Taylor
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
