PIS settles out of court on Westpoint
Litigation funder IMF Australia has reached a conditional settlement on behalf of Westpoint investors against Professional Investment Services (PIS).
The settlement relates to proceedings IMF funded in the New South Wales Supreme Court on behalf of the affected investors. IMF’s statement to the Australian Securities Exchange said the terms of the settlement were confidential between the parties, but that the majority of the settlement was expected to be paid next financial year (ending 30 June 2011).
Settlement is conditional on the dismissal of the proceedings.
IMF has funded three Westpoint actions. One of the actions remains unresolved, but the IMF anticipated this would be resolved in “the near future”.
IMF expects to generate a profit, after capitalised overheads but before tax, of approximately $1.5 million from the PIS settlement. This will deliver approximately $3.25 million of revenue to the listed group.
Recommended for you
ASIC commissioner Alan Kirkland has detailed the regulator’s intentions to conduct surveillance on licensees and advisers who are recommending managed accounts, noting a review is “warranted and timely” given the sector’s growth.
AMP and HUB24 have shared the areas where they are seeking future adviser growth, with HUB24 targeting adding more than 2,000 advisers to the platform.
Bravura Solutions has appointed a new chair and deputy chair to take over from departing Matthew Quinn, while Shezad Okhai picks up another responsibility.
Two advisers say M&A is becoming a “contact sport” as competition heats up to acquire attractive advice firms, while a lack of new entrants creates roadblocks in organic growth opportunities.
