ASIC has agreed to settle the ASIC-initiated Federal Court class action proceeding against Professional Investment Services (PIS) relating to financial advice it gave to clients relating to the Westpoint Group of companies.
The settlement of the proceeding is subject to Federal Court approval. The details of the compensation will not be disclosed until a court hearing tomorrow.
The settlement with PIS, if approved by the court, would result in compensation being paid by PIS, details of which would be disclosed as part of the court approval process, ASIC said.
The settlement was reached without any admission of liability by PIS.
"ASIC has filed an application with the court in Brisbane seeking final determination of the identity of group members to whom compensation will be distributed and seeking approval for it to communicate with those group members [PIS clients], providing details of the compensation they will likely receive and providing them with an opportunity to object to the settlement," ASIC said.
"That application is due to be heard by the court on 15 September 2009. ASIC will, after group members have had time to consider their position, file a further application seeking court approval of the settlement."
ASIC continues to participate in the mediation of claims against other Australian financial services licensees and a claim against State Trustees.
If the matters were resolved at mediation and the settlements were individually approved by the court, it was expected the settlement process would, in each case, be similar to that in the PIS matter, the regulator said.
In December 2007, ASIC the corporate regulator began action against PIS, alleging that the firm was negligent and breached the conditions of its Australian financial services licence (AFSL) in providing such advice.
