The corporate watchdog is working towards further closure for investors caught up in Westpoint.
ASIC has moved a step closer towards finalising compensation for clients in its Glenhurst Corporation (Glenhurst) class action, with the federal court set to assess damages next month.
The corporate regulator will return to court in April for a damages assessment on behalf of Joseph Goodman and a number of former clients of the financial advisory firm.
Goodman is claiming damages against Glenhurst for himself and group members for losses arising from financial advice given by the financial advisory firm to invest in financial products issued by companies in the now collapsed Westpoint group of companies.
On 9 March this year, Justice Gordon ordered ASIC to contact clients within its class action, known as group members, to inform them of the damage hearing and finalise a client list.
In a letter to group members ASIC said if the court approves the assessment process, a group member's damages will be the amount specified in the damages schedule.
"If the court approves damages, it will be binding on group members," the letter said.
"In that event, any money applied to satisfy the group member's claims in the proceeding will be distributed pro rata in accordance with the damages schedule.
"The liquidator of [Glenhurst] does not currently expect to pay a dividend to creditors of [Glenhurst]."
Glenhurst has 98 unsecured creditors seeking more than $7 million and four priority creditors seeking more than $60,000, according to the latest statements from the firm's liquidator CJL Partners.
ASIC commenced proceedings against Glenhurst in 2008.
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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