Slater and Gordon has today welcomed the start of legal action by the Australian Securities and Investments Commission against the founders of the failed investment advisory firm, Storm Financial and some of the banks which lent money to mum and dad investors who were advised by Storm.
ASIC’s court action involves proceedings against the Bank of Queensland, Macquarie and CBA as well as civil penalty proceedings against Storm founders, Emmanuel and Julie Cassimatis.
Mr Damian Scattini, from Slater and Gordon, said the start of legal proceeding by ASIC is good news for Storm investors.
“We welcome the commencement of legal proceedings against Emmanuel and Julie Cassimatis, who will finally be called to account for ruining the lives of so many everyday Australians with their one-size-fits-all financial advice,” Mr Scattini said.
“We have always maintained that ASIC is best placed to secure an industry-wide approach to resolving the issues faced by thousands of former Storm clients in their dealing with the banks.
Mr Scattini said that Slater and Gordon would continue to pursue test cases commenced against BoQ by clients of the firm.
“These claims are well advanced. We view ASIC’s litigation against BoQ as the opening a second front in the battle for compensation.
Mr Scattini also confirmed that “ASIC’s legal action against CBA means that for our clients who have resolved claims against CBA if ASIC gets an improved result than was originally negotiated thorough the resolution scheme they will automatically receive a top-up.
“This was an important element of the original CBA Storm resolution scheme and we are pleased to see this ‘carve out’ provision will now potentially provide additional compensation for our clients,” Mr Scattini said.