Financial planning firm Victorian Families Retirement Investment Group (Victorian Families) has been placed into provisional liquidation.
The Federal Court in Brisbane placed the wholly-owned subsidiary of Storm Financial in provisional liquidation yesterday.
Storm's voluntary administrators Ivor Worrell and Raj Khatri, partners with Worrells Solvency and Forensic Accountants, were appointed provisional liquidators.
Worrell recommended the provisional liquidation of the firm as it had ceased doing business, all the directors of the firm had resigned and the shareholding of the business is subject to control by the receivers of Storm.
The recommendation was also made after the receivers had declined to take control of Victorian Families over concerns the business might be subject to large claims from clients.
Victorian Families had been operating from premises owned and controlled by Storm Financial and the receivers were concerned about a perception of conflict of interest.
Victorian Families had many clients on its books and at least $41 million of assets under management, Worrells said.
"As required under the Corporations Act, we will be conducting investigations into the business affairs of Victorian Families, including reviewing the roles played in the business by Storm Financial's directors, and will seek to maximise returns to creditors," he said.
At this stage it was impossible to estimate the return to creditors until investigations were completed and all claims received, Worrell said.
Creditors of Victorian Families Retirement and Investment Group should contact Worrells for further details, he said.
