ASIC's Storm case to continue
The Storm Financial compensation case brought by the Australian Securities and Investments Commission (ASIC) on behalf of two investors is set to continue, after the Federal Court rejected challenges from the companies involved in the collapse.
In December 2010, ASIC commenced legal proceedings on behalf of Barry and Deanna Doyle against Bank of Queensland, Senrac and Macquarie Bank.
The case was in relation to the alleged breach of contract, contravention of statutory prohibitions against unconscionable conduct, and the banks' liability as linked credit providers of Storm under the Trade Practices Act 1974.
Earlier this year, all three companies asked the court to strike out and dismiss the whole or part of ASIC's statement of claim, which was rejected by Justice Lindsay Foster.
The court has, however, asked ASIC to clarify certain aspects of the claims by filing an amended statement of claim.
These proceedings are separate from other Storm-linked legal cases brought by ASIC, including the civil penalty proceedings against former Storm chief and his wife, Emmanuel and Julie Cassimatis.
Recommended for you
Licensee Centrepoint Alliance has completed the acquisition of Brighter Super’s annual review service advice book, via Financial Advice Matters.
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
