Senrac is the owner and franchisee of BOQ’s North Ward branch in Townsville.
The Australian Securities and Investments Commission (ASIC) commenced the proceedings on behalf of Barry and Deanna Doyle in December 2010.
The payment – which was agreed to ‘without admission’ – will fully compensate the investors, according to ASIC.
ASIC chairman Greg Medcraft said the proceedings were brought to hold the banks accountable for their role in the Storm losses, and “to establish a basis upon which the Doyles, and ultimately other Storm investors, could achieve fair and adequate compensation”.
The case against the banks related to alleged breach of contract, contravention of statutory prohibitions against unconscionable conduct, and the banks’ liability as linked credit providers of Storm under section 73 of the Trade Practices Act.
A three-week trial was due to commence on 3 June 2013 in the Federal Court.
Mr Medcraft said he was pleased that the allegations against BOQ and Macquarie Bank had provided a template for similar allegations against BOQ, Macquarie Bank and the Commonwealth Bank.
“ASIC will continue its efforts to achieve fair compensation for all former Storm investors,” he said.
The regulator announced on Monday that it would be appealing another $82.5 million settlement, which arose as a result of a class action on behalf of Storm investors against Macquarie Bank.
In that settlement, Sydney law firm Levitt Robinson represented 1,050 Storm clients who took out margin loans with Macquarie Bank.
ASIC is concerned that the 315 investors who funded the class action have received a better deal than the remaining 735 Storm clients represented in the action.
