The Storm Investors Consumer Action Group (SICAG) has backed calls by ASIC for banks linked to failed advice firm Storm Financial to engage in settlement discussions with former clients.
“We have been calling on the banks now for months to follow the lead of the Commonwealth Bank of Australia (CBA) and sit down and talk to their Storm-affected customers,” SICAG co-chairman Mark Weir said.
“We are encouraged to learn that ANZ and NAB [National Australia Bank] have responded positively to ASIC’s advice, but we also note the continued reluctance of the Bank of Queensland, Westpac, Macquarie and Suncorp in particular to engage with their Storm-affected customers in any meaningful manner.”
Weir said it was disappointing that SICAG were “forced” to take legal action against the Bank of Queensland in the Queensland and New South Wales jurisdictions.
“The CBA has publicly acknowledged shortcomings in its dealings with Storm Financial and have worked closely with us and Slater & Gordon to hammer out a resolution scheme that appears to be operating quite well in relation to retail lending issues,” he said.
“We are reserving our overall judgment on the scheme, however, until we see the outcome of deliberations regarding the critical margin lending issue,” Weir said.
SICAG is waiting for the tabling of ASIC’s year-long report into the collapse of Storm Financial, Weir said.
Commenting on a possible deadline for the scheme a CBA spokesperson said: “Commonwealth Bank is continuing to interview clients. We estimate interview completion in the first quarter of 2010.”
“We are looking at outcomes as a matter of priority and continue to work constructively with the independent panel. However, there are a large number of participants, some with complex positions, in this process and each participant’s position needs to be considered on an individual basis.”
Earlier this month, newspaper reports said ASIC called on the banks to commit to a scheme finalised by CBA and legal firm Slater & Gordon.
