ASIC and Commbank settle stormy disagreement
Commonwealth Bank and the Australian Securities and Investments Commission (ASIC) have reached a resolution in relation to Storm Financial, the financial services firm that collapsed in 2008, costing investors an estimated $3 billion.
The agreement will see up to $136 million made available as compensation for losses suffered on investments made through Storm Financial, and will be made available to CBA customers who borred from the bank to invest through Storm.
The $136 million is in addition to payments of approximately $132 million, and other benefits, CBA has already provided to Storm investors under its CBA Resolution Scheme.
David Cohen, Group General Counsel said, “We are pleased to have reached an agreement with ASIC on this matter as it is in the best interests of our customers to avoid lengthy and uncertain litigation.”
“This result delivers certainty to our customers who might otherwise have faced further years of delay before any final litigation result would have been known,” he added.