The Commonwealth Bank of Australia (CBA)’s resolution process is painless for a number of former Storm Financial (Storm) clients, however, the lack of culpability taken by the bank over hardship grounds remains a contentious issue, the chair of the Storm investors group has said.
“The feedback that we’re getting is that they [resolution interview process] are proving to be quite painless, there was some debate initially whether or not our members should demand a face-to-face but as it unrolls we’re determined that they are fairly innoxiously,” Investors Consumer Action Group (SICAG) joint chairman Mark Weir said.
“We would point out that there is an emphasis regrettably in this whole resolution scheme that is directed towards hardship. That is a bone of contention for us because if the bank was to admit culpability where we believe they should and where they are pulling up one steps short of admitting responsibility for the margin loan management and margin calls and shooting responsibility back to Storm.
“If they were prepared to admit culpability in that regard then the hardship would be taken care of in their compensation package.”
Last week, Slater & Gordon announced it had settled around 50 claims of clients who used gearing provided by the bank to implement Storm’s financial strategies.
A determination is yet to be known on margin loan claims, though it was expected by the end of November, Weir said.
