Powered by MOMENTUM MEDIA
lawyers weekly logo
Advertisement
Superannuation
11 July 2025 by Maja Garaca Djurdjevic

Beyond Silicon Valley: How super funds thrived on diversification in 2025

Superannuation funds have posted another year of strong returns, but this time the gains weren’t powered solely by Silicon Valley. In contrast to ...
icon

Netwealth edges in on rival HUB24 with record FUA net flows

The wealth management platform remains a strong performer in the platform space, generating a record $15.8 billion in ...

icon

South Korean exposure pays off as ASX-listed ETF jumps 32%

The iShares MSCI South Korea ETF (IKO) gained 32.1 per cent in the first six months of the year, marking South Korea’s ...

icon

Instos anticipate crypto to feature in traditional portfolios by 2030

Three-quarters of institutional investors believe cryptocurrencies will form part of traditional portfolio allocations ...

icon

US tipped to be ‘the big loser’ of Trump’s expanding trade war: AMP

The rollout of further tariffs in the US from August is expected to decrease economic growth in the US in the ...

icon

Government cements RBA overhaul with new rules

The government has cemented its overhaul of the RBA’s governance with the release of an updated Statement on the Conduct ...

VIEW ALL

Storm did not act on margin calls: CBA

  •  
By
  •  
4 minute read

Storm did not act on margin call data, CBA says.

Storm Financial did not act on margin calls it received from Commonwealth Bank of Australia's (CBA) margin lending arm, Colonial Geared Investments (CGI), during the sharp stock market fall at the end of 2008, the bank told a federal parliamentary committee in Sydney on Friday.

"In October and November 2008, it was increasingly realised that the instructions to Storm were not being acted on," CBA business and private banking group executive Ian Narev told the Parliamentary Joint Committee inquiry into financial products and services.

According to CBA, it then started contacting Storm clients directly about breaches of loan covenants, but clients did not want to discuss the matter with the bank, Narev said.

"They wanted to speak with their financial adviser first," he said.

 
 

CBA told the committee it was common practice to rely on dealer groups to send margin calls to clients.

"We would like to point out that the other 7000 dealers were treated in exactly the same way [as Storm], and 15,000 margin calls were made through those 7000 dealers in the October through December period," Narev said.

Storm founder Emmanuel Cassimatis told the committee early last week it was CGI's responsibility to make margin calls and that he did not know why this had not happened.

He also claimed to have received confusing information that he could not use to inform his customers.

The bank denied these accusations.

"Based on the feedback we have from Storm, there were no signs of lack of information," Narev said.