ASIC details Westpoint probe amid criticism
The Australian Securities and Investments Commission (ASIC) has reiterated its intention to scrutinise the role of financial advisers in Westpoint’s failed mezzanine property lending products after the Federal opposition levelled criticism at the regulator claiming it failed to act when warned about the Westpoint group back in mid 2002.
And in other breaking news, ASIC has confirmed that the man leading the investigation into Westpoint, deputy chairman Jeremy Cooper, has chosen to step aside from the process.
The situation arose as a result of indirect advice provided to Westpoint’s chief executive Norm Carey by Cooper when he was a partner with law firm Blake Dawson Waldron.
A Senate estimates committee was told yesterday ASIC had targeted up to 50 parties in its investigation into the operations of the Westpoint group.
“ASIC is now investigating the conduct of a number of officers and related entities in the group, the licensed and unlicensed advisers who promoted the Westpoint investment and professional advisers,” ASIC chairman Jeff Lucy said.
“The scope of ASIC’s inquiries and investigations will be extensive, covering close to 50 individuals and entities,” he added.
Labor’s criticism of the corporate regulator’s inactivity over Westpoint stems from warnings about the corporation provided by the Western Australian Department of Consumer and Employment back in 2002. ASIC admitted to the committee that it had not acted on this information because investors themselves had not lodged any complaints about losing money.
“Thousands of Australians invested hundreds of millions of dollars since initial warnings were given to ASIC in mid 2002. ASIC action against Westpoint in November 2005 has come far too late,” Federal Shadow Minister for Superannuation Nick Sherry said.
It is estimated over 3,000 investors stand to lose approximately $300 million in funds due to the collapse of Westpoint’s mezzanine funds.
Recommended for you
With the final tally for FY25 now confirmed, how many advisers left during the financial year and how does it compare to the previous year?
HUB24 has appointed Matt Willis from Vanguard as an executive general manager of platform growth to strengthen the platform’s relationships with industry stakeholders.
Investment manager Drummond Capital Partners has announced a raft of adviser-focused updates, including a practice growth division, relaunched manager research capabilities, and a passive model portfolio suite.
When it comes to M&A activity, the share of financial buyers such as private equity firms in Australia fell from 67 per cent to 12 per cent in the last financial year.
