Professional Investment Services (PIS) has not ruled out the possibility of being slapped with an enforceable undertaking (EU), as a result of their involvement in the collapse of Westpoint.
While PIS has not been contacted by ASIC about an EU, there is a possibility it may happen, the company’s managing director Grahame Evans told InvestorDaily yesterday.
“We are keen to settle the Westpoint issue and there’s always a possibility when talking with ASIC, that they may come back to us and look at that [the EU] as part of the settlement process,” Evans said.
“We are only at very early stages of discussions with ASIC around settlement so we haven’t gotten into any detail.
“We’re looking at, from a discussion perspective, whether ASIC is interested in settling and if that’s the case, what would be the form.
“I think it’s [the EU] a bit of hypothesis at this stage but I wouldn’t rule it out. We’re probably the only big fish around town who hasn’t had one.”
Meanwhile, PIS is keeping copies of all its advisers’ statements of advice but Evans denied this was a result of the rumoured EU.
“We didn’t think about it in that way to start off with. It would certainly be substantial evidence to show ASIC our processes are substantially changed [since PIS’ involvement in Westpoint],” Evans said.
“So that may mitigate any potential chance of some sort of action from ASIC.”
ASIC would not comment on whether it plans to issue PIS with an EU.
Earlier this year, ASIC filed actions against six licensees: Bongiorno Financial Advisers, Dukes Financial Services, Strategic Joint Partners, Masu Financial Management, PIS and State Trustees.
PIS and ASIC will return to court on August 19.
