Commonwealth Bank acknowledges ASIC position on Storm Financial
Sydney 19 March 2010: The Commonwealth Bank today acknowledged ASIC’s statement on Storm Financial investor compensation. The Bank noted that ASIC’s approach supported its own view that a commercial resolution for Storm clients was preferable to protracted litigation.
The Bank has said repeatedly that it would put things right where it had done wrong and it believes its Storm Resolution Scheme is at the forefront of assisting customers affected by the collapse of Storm Financial.
The Bank’s, Chief Executive Officer, Ralph Norris reiterated his previous statement that the Bank’s intention is to implement a fair, transparent and expeditious resolution for those Commonwealth Bank customers impacted by the collapse of Storm Financial.
ASIC’s proposal that Storm Financial clients obtain legal advice before accepting a resolution offer is already an integral part of the Bank’s Resolution Scheme. All participants in the Scheme are provided with independent legal advice (paid for by the Bank up to an agreed cap) and having legal advice is a prerequisite for entry into the resolution process.
The Commonwealth Bank’s commitment to making things right is underpinned by a resolution framework approved by an Independent Panel comprising retired High Court Justice Ian Callinan AC QC, retired Federal Court Justice Roger Gyles AO QC and Robert Gotterson QC.
The Bank confirmed that a very important feature of its Scheme is the direct “carve out” undertaking that customers who accept settlement offers would still retain all of their rights to benefit from any improved outcome that may result from action undertaken by ASIC.
The Bank remains committed to working with its customers impacted by the collapse of Storm Financial through the Scheme in a fair, transparent and expeditious manner.
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