The Financial Planning Association (FPA) is concerned that ASIC's legal action against the promoters of Westpoint does not include unlicensed financial planners.
Yesterday the corporate watchdog announced that it would seek compensation for investors in the Westpoint Group. This included action against eight mezzanine companies and five licensed financial planning firms that sold Westpoint investments.
"We are concerned that ASIC will only take action against the directors of mezzanine companies and licensed financial planners," FPA chief executive Jo-Anne Bloch said.
"It seems only those covered by professional indemnity have been pursued yet there have been a number of unlicensed advisers that have sold Westpoint investments and yet have managed to escape the net."
According to the regulator, up to 85 per cent of investors in the failed group stand to benefit from the action.
The regulator will potentially seek up to $245 million in claims from the mezzanine companies and about $63.2 million in damages from the five licensees.
"Financial advisers have played and continue to play an important and valuable role for retail investors in relation to many complex products beyond just property. These proposed actions should be viewed in the context of the particular facts of Westpoint and how those products were sold," ASIC chair Tony D'Aloisio said.
Bloch said the FPA would be watching the legal process closely to determine whether its members remained compliant with the regulator's code of practice.
