Former investors of Storm Financial (Storm) are calling on the government to launch an inquiry into Australian banks and their involvement in the advisory firm’s collapse.
“We believe a banking inquiry would be a good medium where we can get some answers to our circumstances,” Storm investor and co-chairman of the Storm Investors Consumer Action Group (SICAG) Mark Weir told InvestorDaily.
SICAG is working with Slater & Gordon to form both group and individual legal actions against Storm and the Commonwealth Bank.
Funding of any proposed class or individual action will be funded by Slater & Gordon on a “no win, no fee basis”, Weir said.
“He [Slater & Gordon practice group leader Damien Scatinni] has already indicated that the elements of this case don’t quite fit the classic class action model and therefore he is looking at other legal remedies – smaller group litigation, or individual litigation,” he said.
“Whilst he’s analysing each of the cases to determine what best avenue to pursue, we will push very actively for a banking inquiry to the senate.”
It is expected that more than a few thousand Storm investors will mount legal action, Weir said.
“I expect that by the time we hold meetings in other provincial centres along the Queensland coast … I reckon we’ll be up around a couple of thousand people who were affected,” he said.
The SICAG held an investor meeting last night in Townsville.
