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.
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