ASIC intends to begin compensation discussions with parties involved in its Storm Financial investigation.
ASIC is set to begin confidential compensation discussions with individuals and entities involved in its investigation into the collapse of Storm Financial (Storm).
News of the discussions comes as the corporate regulator announced today it had completed a major phase of its investigation into the affairs of Storm.
The confidential discussions will form part of ASIC's next phase of its investigation to determine whether a commercial compensation resolution can be reached for Storm clients.
If a commercial resolution cannot be sought, ASIC has not ruled out taking compensation actions in relations to individuals and entities linked to Storm, a statement from the regulator said.
ASIC will meet with representatives of Storm clients and Slater & Gordon to outline what it is doing and will, as far as reasonably possible, keep them informed, the statement said.
In relation to offers made to Storm clients as part of the Commonwealth Bank of Australia (CBA) Storm Resolution Scheme, ASIC has suggested that each Storm client needs to decide for themselves, with the benefit of legal advice, whether or not to accept the offer.
ASIC has called for Storm clients to obtain legal advice about whether any agreement reached between a Storm client and CBA will allow them to participate in, or have the benefit of, any compensation arrangements.
The corporate regulator has also suggested Storm clients seek an extension of time from the CBA within which to accept any offer to enable them to assess the results of discussions which ASIC is proposing.
ASIC will not be making further public comment until confidential discussions have been completed.
ASIC's investigations into Storm covers, in addition to compensation, other enforcement actions and its investigations will continue.
ASIC intends to release a dedicated website for Storm clients.
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