WIG rejects Westpoint litigation offer

property/ASIC/chairman/

13 November 2007
| By Liam Egan |
image
image image
expand image

Tony D'Aloisio

Westpoint Investors Group (WIG) has rejected an offer by the Australian Securities and InvestmentsCommission last week to take legal action on behalf of the group, which is seeking compensation for its members’ failed investments.

The group has instead renewed its call for a royal commission into whether ASIC is responsible for the losses incurred by investors in the failed Westpoint property scheme, according to WIG president Graham MacAulay.

“Why is ASIC not responsible for the losses of investors in Westpoint,” he asked in a WIG media release yesterday, at the same time saying in his “personal opinion” the “proposed litigation will happen shortly after hell freezes over”.

He said ASIC was responsible for losses by failing to recognise and take the necessary action back in 2000 that Westpoint Mezzanine schemes were unregistered managed investment schemes.

In announcing the litigation, ASIC chairman Tony D’Aloisio said that Westpoint was a case where ASIC believed that the conduct of those involved fell short of what the law expected.

“We consider there is a clear public interest in using ASIC’s powers to pursue compensation for Westpoint investors,” he said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

The succession dilemma is more than just a matter of commitments.This isn’t simply about younger vs. older advisers. It’...

1 month 1 week ago

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

2 months ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

2 months 1 week ago

ASIC has canceled the AFSL of Sydney-based asset consultant and research firm....

1 week 2 days ago

The Reserve Bank of Australia has announced its latest interest rate decision following this week's monetary policy meeting....

2 weeks 4 days ago

A former financial adviser who stole $4.4 million from his family and friends to feed gambling debts has been permanently banned by ASIC....

3 weeks 2 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
moneymanagement logo