Westpoint investors can recover losses through PI insurance
The NSW Supreme Court of Appeal has ruled that investors in failed property company Westpoint can recover their losses through professional indemnity (PI) insurance that was taken out by the financial planning group Quantum Securities.
Quantum took out PI insurance with QBE Australia.
Allegedly inappropriate advice to invest in Westpoint was provided by financial planner and Quantum authorised representative Andrew Chen. He advised clients to invest almost $6.9 million in Westpoint’s Bayshore and Mount Street development in Port Melbourne and North Sydney respectively.
Law firm Slater and Gordon launched a class action in 2007 on behalf of 59 investors in the failed property group who lost millions in investments in the two developments. The developments went into liquidation in December 2005.
QBE claimed in court that the PI insurance could not be used to cover the financial losses from this advice, however, the NSW Court of Appeal ruled that the PI insurance could be used to cover investors' losses if the class action was successful.
Ben Whitwell of Slater and Gordon said investors had jumped yet another hurdle to recover the money they lost from inappropriate financial advice.
Recommended for you
In this episode of Relative Return Insider, host Keith Ford and AMP deputy chief economist Diana Mousina break down the spike in inflation numbers and what it means for the possibility of a rate cut as we move into the new year.
In this episode of Relative Return Insider, host Keith Ford and AMP economist My Bui explore Prime Minister Anthony Albanese’s trip to the US and the critical minerals deal stemming from his meeting with President Donald Trump.
In this episode of Relative Return Insider, host Keith Ford and AMP chief economist Shane Oliver unpack the latest unemployment numbers and what they mean for a rate cut, as well as how the latest flare-up in the ongoing US–China trade dispute has highlighted the remaining disparity between gold and bitcoin.
In this episode of Relative Return Insider, host Keith Ford and AMP chief economist Shane Oliver take a look at the unfolding impacts and potential economic ramifications of the US government shutdown and the surge in gold and bitcoin prices.
