ASIC vows to pursue Westpoint allegations
Tony D'Aloisio
The Australian Securities and Investments Commission (ASIC) has declared its determination to pursue legal action against Westpoint directors and officers as well as a number of financial planning firms, including initiating new proceedings.
The chairman of ASIC, Tony D’Aloisio, flagged the initiation of new proceedings in the wake of a Federal Court decision this week that held it did not have the power to pursue action against the Westpoint directors originally initiated by the liquidators of the company, PricewaterhouseCoopers.
D’Aloisio said the Federal Court decision had clarified a point of law and that the regulator would immediately institute fresh proceedings.
“Let me reassure Westpoint investors that the decision does not affect the substance of the cases which we are pursuing in which we are seeking compensation for them.”
The original action pursued by ASIC involved allegations against directors and officers of Westpoint with respect to the misapplication of funds raised by mezzanine companies within the group.
ASIC also alleged that, in selling products with the risk and financial characteristics of Westpoint, the following five licensees did not comply with their obligations under the conditions of their Australian Financial Services licences and under the law: Bongiorno Financial Advisors Ltd and Bongiorno Financial Advisors (Aust) Ltd, Dukes Financial Services Pty Ltd, Dukes Financial Services Australia Pty Ltd, Glenhurst Corporation Pty Ltd, Masu Financial Management Pty Ltd and Professional Investment Services Pty Ltd.
Later allegations were raised with respect to Strategic Joint Partners Pty Ltd and State Trustee Limited.
AUTHOR
Mike Taylor
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