July saw ASIC commit to recovering compensation for former Storm Financial clients, a move that signalled the CBA's resolution scheme was on shaky ground. In an update to Storm Investors Consumer Action Group joint chairmen Mark Weir and Noel O'Brien on 21 July, ASIC chair Tony D'Aloisio and ASIC chief legal officer Michael Kingston said the corporate regulator remained on track to secure compensation for Storm clients and stood by its decision to seek commercial resolution.
By October, the founder of the failed advice group, Emmanuel Cassimatis, was ordered by the FPA to pay $20,000 in fines and had his membership cancelled after lengthy investigations by the association's Conduct Review Commission's disciplinary panel found him guilty of multiple breaches of its code of ethics and rules.
In November, ASIC announced it would bring about civil penalty proceedings against the principals of Storm Financial as well as pursuing legal action against CBA, BOQ and Macquarie Bank in relation to the collapse of the financial planning organisation.
The corporate watchdog said it would also be taking legal action against Emmanuel and Julie Cassimatis, alleging they breached their duty as directors by allowing the organisation to be exposed to legal liability after the two principals implemented a business model that did not take into account the personal circumstances of its clients.
