ASIC has scaled back its involvement in the recovery of funds on behalf of Westpoint investors as the corporate regulator moves into the final stage of its compensation actions.
In a statement on its Westpoint Investors website, ASIC confirmed a federal court judge had given the all clear to PricewaterhouseCoopers and Ferrier Hodgson, the liquidators connected to nine Westpoint Group companies, to distribute recovered funds to investors.
"ASIC is moving to the final phase of its Westpoint compensation actions as the majority of ASIC's litigation to benefit Westpoint investors has now come to an end," it said.
The corporate regulator said settlement funds of $67.45 million would shortly be paid to the liquidators.
"The liquidators will distribute the settlement funds as part of the usual liquidation process," it said.
Earlier this year, ASIC settled the Federal Court actions against KPMG, the former auditor of Westpoint companies and three people who were appointed as, or are alleged to have been, directors of those companies.
In line with ASIC toning back its Westpoint proceedings against the nine companies, the regulator intends to close a section of its Westpoint investor website and remove its dedicated liaison officer.
"The personalised section of the Westpoint website, which is accessed via the My Investments link on the Westpoint homepage, will no longer be available now that most of the compensation actions have been finalised," it said.
"From 30 September 2011, ASIC will deal with investor queries through ASIC's call centre rather than through a dedicated Westpoint liaison officer."
Despite this move, ASIC's class actions against two Australian financial service licensees, Brighton Hall Securities Pty Ltd and Strategic Joint Partners Pty Ltd, "remain on foot", it said.
"ASIC will continue to keep investors informed in relation to ongoing class actions and its other Westpoint actions through its dedicated Westpoint website and post any further announcements regarding the ongoing class actions on the Westpoint homepage," it said.
The nine Westpoint Group companies with which KPMG and the five Westpoint directors have settled are Anne Street Mezzanine Pty Ltd, Bayshore Mezzanine Pty Ltd, Bayview Heritage Mezzanine Pty Ltd, Market Street Mezzanine Ltd, Market Street Mezzanine No 2 Pty Ltd, Mount Street Mezzanine Pty Ltd, York Street Mezanine Pty ltd, Cinema City Mezzanine Pty Ltd and NSF.
Investors in Westpoint-related products had an outstanding total capital invested of $388 million as at January 2006 when the group collapsed, ASIC said.
