CBA Storm Financial Resolution Scheme underway
Law firm Slater and Gordon (S&G), which is representing many former Storm Financial clients, has announced that a dispute resolution process between Storm clients and the Commonwealth Bank (CBA) designed to avoid a lengthy litigation process has now been put in place.
Already 1,000 of the estimated 2,500 former Storm investors who had loans with CBA and Colonial First State have shown interest in the scheme, which will provide a process in an attempt to resolve the claims in a more timely and cost efficient manner than going through the courts.
“We want to put these people in the best position possible, we want them to keep their homes,” S&G lawyer Ben Hardwick said.
An S&G statement said the scheme would enable clients’ circumstances to be reviewed by CBA while there would also be a full disclosure of documents and facts by the bank.
S&G will provide independent legal and financial advice paid for by CBA. A former high court justice, Ian Callinan, will provide independent determinations where agreement cannot be reached between CBA and the client.
In addition, a caveat in the scheme enables Storm victims to withdraw from the scheme at any stage and proceed with court action, according to Hardwick.
Any determination in the scheme is not binding on the Storm customer but will be binding on the bank, Hardwick said.
Recommended for you
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With wealth management M&A appetite only growing stronger, Business Health has outlined the major considerations for buyers and sellers to prevent unintended misalignment between the parties.
Industry body SIAA has said the falling number of financial advisers in Australia is a key issue impacting the attractiveness and investor participation of both public and private markets.
