ASIC to seek commercial resolution on Storm
The Australian Securities and Investments Commission (ASIC) has declared that it is moving to the second phase of its investigation into Storm Financial Limited, in which it will seek commercial resolution.
The regulator announced today that the second stage of its Storm process would last until the end of May. It will involve entering into confidential discussions with the individuals and entities that have been the subject of ASIC investigations to see if a commercial resolution can be reached and recommended to investors.
ASIC said it considered that a commercial resolution, if it could be reached, would be preferable to protracted litigation.
However ASIC warned that in the event of commercial resolution not being reached with particular individuals and entities, it would make decisions about compensation actions.
The regulator said it would be meeting with representatives of Storm investors and law firm, Slater and Gordon, to outline what it is doing.
ASIC said that it would be up to each Storm investor to decide for themselves whether to accept the offer made to them as part of the Commonwealth Bank of Australia Storm Resolution Scheme.
However, it suggested that investors obtain legal advice and consider seeking an extension of time from the bank to consider acceptance of the offer.
AUTHOR
Mike Taylor
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