End of the road for Storm Financial's southern associate
The financial planning offshoot of Storm Financial is now at the end of the road.
The Geelong-based Victorian Families Retirement Investment Group (Victorian Families) was yesterday placed into provisional liquidation by the Federal Court in Brisbane.
A statement from Worrells Solvency and Forensic Accountants (Storm’s administrators) said Victorian Families has many clients on its books and at least $41 million in assets under management.
Ivor Worrell and Raj Khatri of Worrells have been appointed provisional liquidators of the financial planning group, which ceased providing advice to its clients last month when its directors came under pressure as a result of their involvement with Storm.
As reported by Money Management this morning, all the directors of Victorian Families — many of whom were also directors of Storm Financial — recently resigned.
Victorian Families had been providing investment advice to clients, and while it operated under a different brand to Storm Financial, it did so on premises owned and controlled by Storm, while also receiving accounting and administration support from its parent company.
There are now concerns that clients of Victorian Families may have a basis for legal action against the group. Korda Mentha — the receivers of Storm Financial appointed by the Commonwealth Bank of Australia — declined to take control of Victorian Families for this reason.
“As required under the Corporations Act, we will be conducting investigations into the business affairs of Victorian Families, including reviewing the roles played in the business by Storm Financial’s directors, and will seek to maximise returns to creditors,” Worrell said.
Worrell said it was “impossible to estimate the return to creditors until investigations were completed and all claims received”.
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