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Bongiorno Finanical Advisers will pay investors more than $2.5 million in compensation in settlement of its exposure to Westpoint Group investments.
The Australian Securities and Investments Commission (ASIC) has announced the compensation in relation to clients who were advised to invest in York Street Mezzanine, which was part of the Westpoint Group.
The Federal Court has approved a distribution mechanism whereby group members will ultimately recover between 43 and 62 per cent of their invested capital in York Street.
ASIC said this figure took into account dividends received through the liquidation of York Street and payments Bongiorno had previously made to certain group members.
ASIC also announced it had reached an agreement to settle a class action against Melbourne-based trustee company State Trustees Ltd (State Trustees) for $13.5 million.
The settlement, which is subject to court approval, relates to investments made in mezzanine notes issued by Market Street Mezzanine Ltd (Market Street Mezzanine Notes), a company in the failed Westpoint group.
