6. January 2011 10:02
As flagged in a previous post, ASIC has commenced proceedings in the Federal Court in relation to the collapse of Storm Financial.
ASIC was unable to reach an acceptable commercial outcome with respect to compensation in its discussions with key bank parties.
There are three sets of proceedings in total:
- Federal Court compensation proceedings in the name of ASIC and two former Storm investors against the Bank of Queensland, Senrac Pty Ltd (owner and franchisee of the North Ward branch of that bank), and Macquarie Bank Limited in relation to alleged breach of contract, contravention of the statutory unconscionable conduct prohibitions, and for liability as linked credit providers of Storm under s 73 of the Trade Practices Act 1974;
- Federal Court proceedings against Storm, Commonwealth Bank of Australia, Bank of Queensland and Macquarie Bank in relation to Storm’s alleged operation of an unregistered managed investment scheme in which the banks were involved; and
- Federal Court civil penalty proceedings against Emmanuel and Julie Cassimatis for alleged breach of their obligations under s 180 of the Corporations Act.