A large portion of former Storm Financial margin loan clients have agreed to accept compensation from the CBA.
More than 150 former margin loan clients of Storm Financial (Storm) have agreed to accept compensation offers made by the Commonwealth Bank of Australia (CBA), litigation firm Slater & Gordon has said.
The new figure boosts the number of Storm client settlements to close to 220.
Slater & Gordon settled almost 70 client claims late last year, the firm said.
To date, 350 margin loan clients of the failed financial advisory firm have received compensation offers from the CBA under its resolution scheme.
The majority of margin loan only clients will have received offers by the end of March, with all remaining Storm clients under the resolution scheme set to receive their offers by the end of May, the firm said.
"The general feeling we are getting from our clients is after carefully considering their situation, they believe accepting the offer is their best option and an important step in putting this sorry saga behind them," Slater & Gordon group practice leader, Brisbane, Damian Scattini said.
Scattini said while clients have been given 28 days to respond to CBA offers, the bank has agreed to extensions in some cases.
Under the CBA scheme, clients can reject an offer from the bank and ask for their case to be heard by the scheme's independent panel.
Clients may also withdraw from the scheme at any time with all their legal rights and entitlements intact, the firm said.
Slater & Gordon and the CBA reached an agreement to offer compensation to Storm clients last month.
The two non-consecutive alphabetic letters encountered most often last week caused more controversy than the underlying policy they represented, Wouter Klijn writes.... read more »
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