Storm enters administration
Storm Financial has entered voluntary administration in the wake of the Commonwealth Bank of Australia (CBA) giving the beleaguered financial planning firm just 24 hours to repay its corporate debt facilities.
Money Management has confirmed the financial planning firm had “no choice” but to enter administration after CBA demanded full payment of corporate debt facilities. Storm Financial said the bank gave them a one-day notice period to repay their debt.
“We were unable to raise the funds in such a short time period and, as a result, the directors of Storm Financial have been forced to appoint administrators,” chief executive Emmanuel Cassimatis said.
News reports have quoted Cassimatis as saying the bank’s move represented an “extremely aggressive demand”.
In late December Storm issued legal proceedings against CBA in connection with margin loans from the CBA group.
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.
