Press Release

Macquarie Bank Statement – Storm Financial

Sydney, 26 November 2010

Macquarie Bank Limited (Macquarie) notes the statement released today by ASIC regarding the collapse of Storm Financial (Storm).

Macquarie is disappointed by the claims made by ASIC, which it believes are unsustainable and speculative.  Macquarie has conducted a detailed internal review over the past two years and has received extensive independent legal advice.  Macquarie’s review confirmed that its conduct, together with that of its staff, has been ethical, lawful and professional.  

Over the past 2 years, ASIC has undertaken detailed enquiries of Macquarie and we have fully co-operated and will continue to do so.  Macquarie remains willing to meet and discuss the matter with ASIC.  

Whilst Macquarie recognises that the market downturn affected many investors, including Storm investors, there is a fundamental distinction between the roles of a margin lender and a licensed financial adviser.

Macquarie reiterates important facts re Storm:

  • Storm and its financial advisers provided clients with financial advice;
  • Storm held an Australian financial services licence (AFSL) issued in 2003 and expanded in 2007;
  • Macquarie did not provide personal financial advice to Storm clients;
  • Macquarie was one of a number of margin lenders whom Storm advisers and their clients selected;
  • Macquarie did not provide home mortgages through Storm; and
  • Macquarie did not pay any fees or trailing commissions to Storm on the margin loans.  

Macquarie has been responding under its established dispute resolution process to any complaints made by Storm-advised clients who had margin loan facilities with Macquarie.  Where delays in processing of redemptions or account closures may have contributed to financial detriment, Macquarie made payments for these and other account errors.

 

Other legal action

Macquarie recently received an approach from a law firm claiming to act on behalf of a number of Storm clients.  Macquarie will strongly defend its position in any proceedings.

 

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