ASIC has reached an agreement to settle its actions against financial services firm Barzen, formerly known as Dukes Financial Services, for $1 million.
The settlement is the sixth reached by ASIC as part of its compensation proceedings on behalf of Westpoint investors.
The settlement is subject to the approval of the Federal Court, and if approved, should result in compensation being paid to eligible investors, also known as group members.
ASIC anticipates that 70 per cent of the settlement sum will be distributed in January 2011, with the rest of the funds distributed in November next year.
The settlement was reached without any admission of liability by Dukes.
In April 2008, ASIC initiated class actions against Dukes to seek compensation for clients who invested in certain financial products issued by various companies within the failed Westpoint Group on the advice of the firm.
The claim alleged that Dukes negligently advised group members to invest in Westpoint products and engaged in misleading and deceptive conduct.
The court will hear submissions for and against the approval of the settlement on 3 November 2010.
ASIC has already reached settlements with Masu Financial Management, Professional Investment Services, Bongiorno Financial Advisors, State Trustees and Glenhurst Corporation.
Group members of ASIC's class action against Glenhurst Corporation, which is now in liquidation, are expected to receive compensation by Friday, 17 September 2010.
ASIC anticipates approximately 90 investors will receive their share of approximately $2.48 million.
Last month, approximately 525 investors in ASIC's class action against Melbourne-based State Trustees also received compensation payments, totalling $13.5 million.
