The looming post mortem
By
Kate Kachor
Mon 19 Oct 2009
As third-party inquiries and public examinations into the collapse of Storm Financial ramp up, the results from the main event will soon be known.
The findings from the Parliamentary Joint Committee (PJC) on Corporations and Financial Services Inquiry into Financial Products and Services in Australia will be released on 23 November.
Earlier this month, PJC chair Bernie Ripoll spoke to delegates at the Association of Financial Advisers national conference.
As well as confirming the release date of the PJC's report, Ripoll also outlined the priorities for the inquiry.
The priorities are: role of the adviser, role of commissions, marketing and advertising campaigns, licensing, consumer financial literacy, adviser education, professional indemnity insurance, role of banks, and role of the regulator.
After his official speech, Ripoll told IFA the PJC would not wait to release the details of the committee's findings until the other third-party reviews and inquiries were completed.
"We're determined and keenly focused on what we're doing as a stand-alone inquiry, but I'm also conscious of other inquiries and already industry change of some things that have been proposed," he said.
"So we're aware of that and that's certainly helped us form part of our views and decision-making process. But it's very much stand-alone and it really will be our inquiry and the committee response to our terms of reference."
He said he was unconcerned by the number of reviews or whether they would confuse the industry or dilute the findings of the PJC.
"No not at all. There is always the opportunity for further consultation and to look at avenues to deal with specifically complex areas, so we'll be looking at the broad range of options that is available to us," he said.
"The aim is to deliver on 23 November a finalised report on the recommendations and I'll be sticking to it."
Much is riding on the findings and recommendations of the PJC's report, particularly in regards to Storm.
Many are adamant in their claims that Storm founders are at fault for being too greedy in their path to building their advice empire.
Suggestions the founders ignored potential warning signs and were even perhaps operating above the law are also doing the rumour rounds.
Others believe the cause of Storm's crash was poor management paired with the global financial crisis.
As the 23 November date nears it is hoped the findings will bring closure for some and questions that have helpful answers.
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