Many clients of Storm Financial (Storm) are questioning the merits of yet another public review into the collapse of the advice group.
Last week, Worrells Solvency and Forensic Accountants announced it would launch its own public inquiry into Storm.
The Worrell inquiry is now the fourth investigation or review into Storm, outside of the Joint Parliamentary Committee’s inquiry into Australia’s financial services industry.
ASIC, the FPA, and the Commonwealth Bank of Australia have all launched inquiries or reviews this year.
“Frankly, I cannot possibly see what this inquiry will achieve that the parliamentary inquiry or ASIC’s inquiry aren’t achieving,” Investors Consumer Action Group joint chairman Mark Weir said.
“I hesitate to make any expression of conjecture here but there seems to be something going on.
“[Almost] half a million dollars is not an insignificant sum of money, but in the scheme of what has been wasted in this whole exercise it’s not that much.”
The Worrell inquiry will seek comment from more than 40 potential witnesses, a company statement said.
“I was asked to provide a list of about 16 clients. I supplied a list of over 20 to ensure against anyone dropping out,” Weir said.
“Nobody denies that we certainly have to get to the bottom of this … but you wonder if it’s going to be money that’s well spent in the end when you consider all of the other efforts that have been made at the present time.”
Worrells obtained $450,000 of funding from ASIC to hold the public hearing.
The funds are to be provided from the ASIC-managed Assetless Administration Fund, Worrells said.
