The FPA has hit back at allegations of harassment and conflicts of interest made by a former Storm Financial adviser involved in the association’s investigation into the collapsed advisory group.
In letters obtained by InvestorDaily, former principal of Storm Financial’s Cairns office, Gus Dalle Cort, accused the FPA of harassing him after he was unable to attend a disciplinary hearing earlier this month on 2 July to answer questions over Storm-client complaints against him.
“It is clear to me that the FPA has not taken any of my letters nor evidence into consideration, nor even read the evidence presented,” the letter, dated 2 July, said.
“The fact that you have not read my letters shows the ‘kangaroo court’ approach you have adopted on this issue from the start.”
Dalle Cort also accused the association of engaging in conflicts of interests by appointing law professor, Dimity Kingsford Smith, as chair of its Conduct Review Commission (CRC).
“Ms Kingsford Smith has written articles and expressed certain views on Storm Financial and the advice given by its advisers, and I do not believe she could be impartial with the views already clearly formed,” a letter, dated 10 June 2010, said.
FPA deputy chief executive and head of professionalism, Deen Sanders, was not able to comment on the outcomes or progress of Dalle Cort’s matter, though said it was disappointing someone would share confidential information about the association’s investigation with the public.
“We have had examples where that sort of action has put clients at risk in their local community. We haven’t prosecuted anyone for breaches of that confidentiality as yet, but it only exacerbates our disappointment about the professional behaviour of those individuals,” Sanders said.
Sanders rejected Dalle Cort’s claim that the association’s hire of Kingsford Smith constitutes a conflict of interest, placing questionmarks over the proceedings.
“An event with the size and impact of Storm Financial’s collapse generates many opinions and I would challenge anybody in the marketplace not to have an opinion about Storm,” he said.
“The professionalism of the CRC panel members (who are primarily certified financial planners and professional peers) is not in question.
“In each instance, they are asked to consider the facts and evidence presented to them and disregard their personal views or the views of others. This is the same expectation we place on the community at large in a court action and we are proud of the way the CRC handles itself with regard to natural justice and professional expectations.”
Sanders said the FPA is not yet ready to release the findings of its Storm investigation, though further announcements on its progress could be released soon.
“The success of the FPA investigation depends heavily on the evidence that arises through the investigation and the substance of the complaint we receive. It’s always easier when we have evidence linked through a complaint to determine whether there has been a breach of our professional expectations,” he said.
“Our investigations into Storm have obviously been affected by the fact that Storm as an entity no longer exists and so documentary evidence about specific behaviours needs to be sourced directly from the complainant or the member under investigation.”
Of the 130 Storm staff, only three financial advisers were CFPs, Sanders said.
Storm collapsed in January 2009.
