Westpoint settlements continue
Melbourne-based trustee company State Trustees has been ordered to pay $13.5 million in compensation to Westpoint investors.
The Australian Securities and Investments Commission (ASIC) has obtained Federal Court approval for the $13.5 million settlement, with State Trustees ordered to pay the amount by March 15.
A statement from ASIC said the settlement allows around 525 investors to take part, with the regulator indicating those eligible would recover just over 70 cents for every dollar they invested in the Mezzanine Notes issued by a Westpoint subsidiary.
The regulator commenced proceedings against State Trustees in 2008 alleging the trustee had failed to comply with its obligations under the Corporations Act and had breached its duty to the holders of the Mezzanine Notes. State Trustees has not admitted any liability.
It is the fourth settlement of ASIC's Westpoint proceedings to be approved by the Federal Court, following settlements with Masu Financial Management, Professional Investment Services and Bongiorno Financial Advisers.
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.
