The managing director of dealer group Professional Investment Services (PIS) has hit out at rumours the firm is suffering financially as a result of Westpoint compensation payments and agribusiness complaints.
“There’s no truth in that at all. We provided for it in our accounts over two years ago,” PIS managing director Grahame Evans said.
“I suppose I’m getting thick skinned in respect to all the pot shots that everyone wants to take at PIS at the moment,” he said.
Suggestions the firm was in for financial pressure over a large exposure to collapsed Australian agribusiness companies Great Southern and Timbercorp were untrue, according to Evans.
“They are just two individual complaints. They are not anything that to us are of significance except concerns from a client – we’re just working through them and we haven’t received any more,” he said.
Further industry comments that PIS were in serious trouble were untrue, with the firm still recruiting staff and experiencing record high intake in new monies, Evans said.
“The business is going along great. We’re still investing $40 million a week in new money for our clients,” he said.
“We had our biggest month ever in new life insurance premiums last month at $3.7 million – we’re still recruiting people.”
Commenting ahead of PIS releasing its annual report, Evans said the firm was in good shape after taking a conservative approach during the past financial year.
“As a board we’ve taken a very prudent and conservative view of things, and so I’m pretty happy with where we are with things,” he said.
On 30 October 2009, the Federal Court of Australia approved the settlement of a compensation claim, initiated by ASIC, to clients who were advised by PIS to invest in the failed Westpoint Group.
Under the settlement PIS must pay eligible investors $5.9 million.
