CBA deals with Storm involvement
The Commonwealth Bank of Australia has admitted to its involvement in financial planning group Storm Financial’s collapse and promised to set things right with affected customers.
The admission makes way for Storm investors to pursue litigation and promises help for customers in financial difficulty as a result of the bank’s shortcomings identified in its lending practices.
Commonwealth Bank CEO Ralph Norris says the bank is “not proud” of its involvement in some of the issues and is working towards a fair and equitable outcome for its affected customers.
“Our customers can be assured that where we have done wrong, we will put it right,” he said. “I am committed to the identification and resolution of all issues relating to the bank’s involvement with Storm Financial.”
Storm Investors Consumer Action Group Joint Chairman Mark Weir told insuranceNEWS.com.au the bank’s admission resulted from a campaign by clients, an investigation by the Australian Securities and Investments Commission, and revelations in submissions to a parliamentary inquiry.
“This has caused substantial damage to their brand name,” he said. “Rather than fortress up and muscle it out they have decided good sense may prevail.
“They haven’t taken any responsibility for the financial planning advice – and nor should they – but certainly the products that were being promoted by Storm were owned and promoted by Colonial State First [which is owned by the Commonwealth Bank].
“Both over a long period of time enjoyed very good fees, charges and commissions from these products.”
He says the fight will continue against other banks, such as ANZ, the Bank of Queensland and National Australia Bank, which have shown “callous indifference” to the plight of their customers and have been in “complete denial” of their involvement with Storm.
The admission makes way for Storm investors to pursue litigation and promises help for customers in financial difficulty as a result of the bank’s shortcomings identified in its lending practices.
Commonwealth Bank CEO Ralph Norris says the bank is “not proud” of its involvement in some of the issues and is working towards a fair and equitable outcome for its affected customers.
“Our customers can be assured that where we have done wrong, we will put it right,” he said. “I am committed to the identification and resolution of all issues relating to the bank’s involvement with Storm Financial.”
Storm Investors Consumer Action Group Joint Chairman Mark Weir told insuranceNEWS.com.au the bank’s admission resulted from a campaign by clients, an investigation by the Australian Securities and Investments Commission, and revelations in submissions to a parliamentary inquiry.
“This has caused substantial damage to their brand name,” he said. “Rather than fortress up and muscle it out they have decided good sense may prevail.
“They haven’t taken any responsibility for the financial planning advice – and nor should they – but certainly the products that were being promoted by Storm were owned and promoted by Colonial State First [which is owned by the Commonwealth Bank].
“Both over a long period of time enjoyed very good fees, charges and commissions from these products.”
He says the fight will continue against other banks, such as ANZ, the Bank of Queensland and National Australia Bank, which have shown “callous indifference” to the plight of their customers and have been in “complete denial” of their involvement with Storm.