Clients of Storm Financial (Storm) will have to lodge a request to gain access to their investment records after the collapsed advisory firm’s major creditor, Commonwealth Bank of Australia (CBA), called in the receivers.
Late last week CBA appointed Richard Buckby, Robert Hutson and David Winterbottom of KordaMentha as receivers of Storm and a number of its subsidiaries.
As a result of receivers being appointed, Storm’s voluntary administrators, Worrells Solvency and Forensic Accountants, have passed the control of Storm’s business and records to KordaMentha.
“As a result of the appointment of receivers control of Storm’s business and records has passed from the voluntary administrators to the receivers,” a statement from Worrells said.
“Consequently, Worrells is unable to assist clients to access any information held by Storm concerning clients’ investments history or position.
“Clients who believe that they are also creditors of Storm should complete a proof of debt form and submit it to us. It is important when completing the proof of debt form that full details and documentation substantiating a claim as a creditor be included.”
Legal firm Slater and Gordon has been contacted by more than 260 Storm clients.
Of these clients, the lowest loss for a client is $150,000 with the highest to date being $12 million, Slater and Gordon practice group leader Damien Scatinni told InvestorDaily.
ASIC commenced an investigation into Storm on 12 December 2008 in connection with margin loans and related advice to Storm’s clients.
Storm closed its doors on 15 January 2009 after being placed in voluntary administration on 12 January 2009.
