ASIC turns on Storm Financial software provider
The Australian Securities and Investments Commission (ASIC) is taking action against a software and research company associated with failed financial planning group Storm Financial in the Federal Court in Brisbane today.
Ignite Financial Systems and Research changed its name from Storm Research in 2007. At the time of the name change, Storm Financial founder Emmanuel Cassimatis was a director of the company and Michael Fenech was managing director.
Ignite's relationship with Storm has centred on a software system called Phormula, which was used by the dealer group's advisers.
According to a Brisbane media report, the former directors of Storm Financial, Emmanuel and Julie Cassimatis, are refusing to turn over key software that would allow investigators to access client files. The article stated that Ignite Financial Systems and Research is the owner of the software and is claiming Storm owes it $1 million.
The article stated that the "standoff has thwarted efforts to fully probe the Townsville-based firm", which was placed in liquidation last week.
"Frustrated by the inability to examine vital data held by the receivers, the Australian Securities and Investments Commission has taken legal action to force Ignite to provide the software," the article stated.
In January this year, Ignite Financial Systems and Research moved to the collapsed dealer group's Brisbane offices and applied for an Australian Financial Services Licence.
Recommended for you
The top five licensees are demonstrating a “strong recovery” from losses in the first half of the year, and the gap is narrowing between their respective adviser numbers.
With many advisers preparing to retire or sell up, business advisory firm Business Health believes advisers need to take a proactive approach to informing their clients of succession plans.
Retirement commentators have flagged that almost a third of Australians over 50 are unprepared for the longevity of retirement and are falling behind APAC peers in their preparations and advice engagement.
As private markets continue to garner investor interest, Netwealth’s series of private market reports have revealed how much advisers and wealth managers are allocating, as well as a growing attraction to evergreen funds.
