ASIC's decision to pursue the owners of Storm Financial and a number of financial institutions in the courts over the collapse of the advisory firm has been welcomed by the Joint Parliamentary Committee on Corporations and Financial Services chair Bernie Ripoll.
"Today's announcement by ASIC that it will pursue Emmanuel and Julie Cassimatis as the directors of Storm Financial as well as other parties including Commonwealth Bank of Australia Limited, Bank of Queensland Limited and Macquarie Bank Limited, is a watershed moment for the long-suffering victims of the Storm Financial collapse," the federal member for Oxley said.
"Today's decision also highlights a capacity for the regulator to not only pursue a commercial resolution but also to follow through with litigation and penalties where it is required," Ripoll said.
"It has always been my view that the full force of the law should be applied to resolve all of the matters in the Storm Financial collapse," he added.
Legal firm Slater & Gordon, which had already taken action against the Commonwealth Bank of Australia (CBA) on behalf of some Storm clients, also supported the decision.
"Today's announcement means our clients who have gone through the CBA resolution scheme and received compensation will now be able to sit in their homes and wait to see if ASIC is able to get them any additional compensation from the bank," Slater & Gordon representative Damian Scatini said.
The regulator made the decision to initiate civil penalty proceedings against the Storm Financial principals as a suitable compensation package for victims of the collapse could not be reached.
"We have not, to date, been able to reach an acceptable commercial resolution with key parties on compensation which ASIC was prepared to recommend to investors. In the circumstances, it was not possible for ASIC to continue to defer the decision to commence legal proceedings. However, ASIC remains of the view that a commercial resolution is the preferable course," ASIC chair Tony D'Aloisio said.
