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Wednesday 30 November 2011

11-276AD ASIC compensation proceedings to continue

The Federal Court of Australia today rejected the main challenges to ASIC’s pleadings made by the Bank of Queensland (BOQ), Senrac Pty Limited (Senrac) and Macquarie Bank Limited (Macquarie Bank), in proceedings brought by ASIC arising out of its investigation into the collapse of Storm Financial Limited (In Liquidation) (Receivers and Managers Appointed) (Storm).

Justice Lindsay Foster declined to strike out the Statement of Claim filed by ASIC on behalf of two former Storm investors (Barry and Deanna Doyle), but required ASIC to clarify certain aspects of the claims by filing an amended statement of claim.

Background

ASIC commenced legal proceedings in the Federal Court of Australia on 22 December 2010 in ASIC’s name and in the name of, and on behalf of, two former Storm Financial investors (Barry and Deanna Doyle) against BOQ, Senrac and Macquarie Bank in relation to alleged breach of contract, contravention of statutory prohibitions against unconscionable conduct and the banks’ liability as linked credit providers of Storm under section 73 of the Trade Practices Act 1974 (Federal Court Proceedings: NSD 1797 of 2010).

On 2 March 2011 Macquarie Bank filed a Notice of Motion asking the court to strike out and dismiss the whole or part of ASIC’s Statement of Claim.

On 3 March 2011 BOQ and Senrac filed a Notice of Motion asking the court to strike out and dismiss the whole or part of ASIC’s Statement of Claim.

The parties’ submissions in respect of the Notices of Motion were heard by Justice Foster on 24 March 2011.

These proceedings are separate from:

  • the proceedings ASIC has brought against Storm, the Commonwealth Bank of Australia, BOQ and Macquarie Bank based on the alleged operation by Storm of an unregistered managed investment scheme in which the banks were allegedly involved, and

  • civil penalty proceedings against Emmanuel and Julie Cassimatis.

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Last updated: 30/11/2011 12:00