Commonwealth Bank to commence settlement with Storm Financial Victims
24 February 2010, Sydney: Commonwealth Bank has finalised a framework to resolve claims brought by customers impacted by the collapse of North Queensland financial advisory firm, Storm Financial. The framework will operate within the Storm Resolution Scheme, announced by the Bank in June 2009, in which over 2000 affected customers are participating.
Commonwealth Bank CEO Ralph Norris said: “Our intention is to implement a fair, transparent and expeditious resolution for those Commonwealth Bank customers impacted by the collapse of Storm Financial.”
“Our commitment to our customers was to put things right where we had done wrong - and we are honouring that commitment,” Mr Norris said.
The Bank agreed the framework with law firm Slater & Gordon based on an assessment of six test cases, representing a variety of scenarios across home and margin lending, by the Independent Panel established by the Bank to oversee the Scheme.
The Panel, comprising retired High Court Justice Ian Callinan AC, retired Federal Court Justice Roger Gyles AO QC and Robert Gotterson QC, have stated that, in their opinion, the framework constitutes a fair and reasonable basis for the resolution of claims.
“While we won’t discuss individual settlements, where shortcomings have been identified the framework will provide customers a variety of possible outcomes based on their specific circumstances, including debt reduction, interest rate relief and cash compensation,” Mr Norris said.
“We have set a tight schedule to finalise offers and will commence making offers from next week. We expect all customers registered for the Scheme to have received a proposal by the end of May 2010.”
Mr Norris said recipients of offers would still retain all their rights under the Scheme, including the ability to have their claim evaluated and determined by the Independent Panel if they wish.
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