ASIC has reached a settlement with Strategic Joint Partners (SJP) over a claim for compensation on behalf of the firm's clients.
SJP clients invested in the failed Westpoint Group of companies, and if approved by the Federal Court, clients will receive over $1.39 million in compensation.
The settlement, which was the eighth in relation to Westpoint, was reached without any admission of liability by SJP.
In March 2008, ASIC commenced proceedings against SJP following concerns the firm had been negligent and had breached the conditions of its Australian financial services licence in providing advice to its clients.
ASIC will communicate with clients, providing details of the compensation they will likely receive and providing them with an opportunity to object to the settlement.
The court has agreed to hear the application for final approval on 23 December 2011.
The investors in Westpoint-related financial products had an outstanding total capital invested of $388 million as at January 2006 when the group collapsed.
Since November 2007, ASIC has launched 19 civil actions seeking to recover funds for investors in the majority of the Westpoint companies.
If the SJP settlement is approved, ASIC would have obtained total Westpoint compensation of $83.9 million.
In September this year, ASIC said it had started to scale back its involvement in the recovery of funds.
