It’s time to start talking about a commercial resolution to the Storm Financial collapse, says the Australian Securities and Investments Commission (ASIC).

The corporate regulator has announced it is entering a “new phase” that will last until the end of May. In that time it will talk confidentially with individuals and entities that have been the subject of its investigations to come up with a resolution that it can recommend to investors.

“ASIC considers a commercial resolution, if it can be achieved, will be preferable to protracted litigation,” the regulator said in a statement.

“However, in the event that during this period a commercial resolution is not or cannot be reached with particular individuals or entities, ASIC will make decisions on compensation actions it will then launch in relation to those individuals and entities for the benefit of investors.”

ASIC says it will meet with investors’ representatives and law firm Slater & Gordon, which represents many Storm investors, to outline what it is doing and will, within the bounds of confidentiality, keep them informed.

The commission also says it’s up to Storm investors to decide for themselves, with the benefit of legal advice, whether or not to accept offers made by the Commonwealth Bank (CBA).

“ASIC suggests that, among other things, a Storm investor obtains legal advice about whether any agreement reached between a Storm investor and the CBA will allow the Storm investor to participate in, or have the benefit of, any compensation arrangements which any ASIC action may secure.”