The Storm Investors Consumer Action Group (SICAG) is yet to decide if it will report a number of financial planners who have preyed on former Storm clients, according to the group’s chairman.
A number of clients told SICAG they felt they were taken advantage of by financial advisers through the pro-bono advice service provided by the FPA, SICAG joint chairman Mark Weir said.
“We’ve had a lot of requests from people and I’ve got no doubts that most of them are certainly genuine in them wanting to help. I wouldn’t want to denigrate any of them,” Weir said.
“However, we have had a few instances where even clients who have followed up the offer with the FPA for initial pro bono consultation, the subsequent consultation has meant that they have been rendered a bill in some cases of nearly $1700 for not really in-depth advice.
“We’re looking at perhaps reporting that to the FPA at the moment.”
As well as clients receiving requests from individual planners, the SICAG itself has been approached by a number of advisers, both individual and larger corporations, interested in gaining contact with former Storm clients, Weir said.
“I did write a proposal to the committee – it was tabled last Saturday suggesting that we have to have a policy on this,” he said.
Storm Financial closed its doors after receivers were appointed to the group on 15 January.
