Whistleblowers that provide information about the collapse of Storm Financial (Storm) will be protected under a parliamentary inquiry, members of a Storm investors group have been told.
The government inquiry into the fall of Storm cannot rule on compensation for investors. However, no individual can be persecuted by any party as a result of evidence, Parliamentary Joint Committee on Corporations and Financial Services chairman Bernie Ripoll told members of the Storm Investors Consumer Action Group (SICAG) last Friday.
“SICAG feels confident that a considerable amount of information will come to light regarding the actions of Storm, margin lenders who failed to notify clients of margin calls, individual banks involved with questionable banking practices, professional indemnity insurers, Storm auditors and ASIC who are currently under the pump for failure to act earlier on complaints received,” a statement from the investors group said.
“Bernie informed us that the committee would be made up of five senators and five members from the House of Representatives and covers both sides of the political fence and all are in agreement that the rules covering the finance and banking industry and ASIC are in need of an overhaul.”
The inquiry starts on 31 July and will conclude on 23 November, according to SICAG.
Ripoll is expected to meet former Storm investors and clients in Townsville on Monday 7 April.
“All members are encouraged to make a submission – for many of us it may be therapy to do so and get out our true feelings. The inquiry committee will then get a better picture of the depth of the disaster,” SICAG said.
“The SICAG committee has been requested to submit questions they would like answered at the inquiry that will fire the bullets at the public hearings which we can attend. All banks have already been put on notice of the requirement to participate and will be given a ‘please explain.'”
