ASIC has announced Federal Court approval for the settlement of a compensation claim to clients advised by Professional Investment Services (PIS) to invest in the failed Westpoint Group.
PIS will be required to pay out $5.9 million to eligible claimants, an amount that equates to 62.5% of the capital they invested.
ASIC commenced action against PIS in 2007, alleging the dealer group was negligent in its provision of advice to investors in relation to the Westpoint Group, and breached its Australian financial services licence. PIS was one of seven AFSL’s against whom ASIC commenced proceedings for compensation on behalf of Westpoint investors.
Since November 2007, ASIC has commenced 19 civil actions seeking to recover funds for investors in the majority of the Westpoint companies. Those claims include:
- Action against KPMG, the former auditors of the Westpoint Group
- Claims against the directors of nine Westpoint mezzanine companies, and various entities associated with a director
- Claims against seven financial planners
- A claim against State Trustees Limited
PIS is required to pay the settlement by 30 November 2009.
