A month after concerns surfaced over Storm Financial's advice to clients on margin loans, the planning firm has gone into voluntary administration.
Financial planning firm Storm Financial (Storm) has entered into voluntary administration.
Worrells Solvency and Forensic Accountants partners Rajendra Khatri and Ivor Worrell were appointed administrators to the group yesterday, an ASIC spokesperson said.
Storm managing director and joint chief executive Julie Cassimatis declined to comment on the matter when contacted by InvestorDaily.
ASIC commenced an investigation into Storm on December 12, 2008, in connection with margin loans and related advice to Storm's clients.
The corporate watchdog's investigation found about 3,000 of Storm's clients had entered into a margin loan for market-linked investments.
ASIC found over 450 clients owed their margin lender more than the value of their portfolios, equating to about $30 million.
Late last year, the FPA offered a free financial planner referral service to assist Storm's clients affected by the margin loan.
The FPA confirmed yesterday it will continue to refer Storm clients with margin lending issues to FPA members.
"FPA members have been very forthcoming in doing what they can to provide people with a second opinion on their financial status, along with advice on what might be the next steps to take," the FPA said in a statement.
"They have been inundated with calls over the Christmas period, and have forgone their own holidays to help out.
"The FPA is also continuing its investigation of Storm Financial Group, and at this stage it is too early to comment."
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