ASIC loses Westpoint battle, but the war continues
Westpoint founder Norm Carey has won his case against the Australian Securities and Investments Commission (ASIC), with the Federal Court ordering the regulator does not have the power to continue existing proceedings brought by the failed investment group’s liquidator.
But ASIC will be able to start new proceedings against mezzanine finance companies involved in Westpoint’s $320 million collapse from the same position in a decision the judge described as “somewhat academic”.
ASIC Chairman Tony D’Aloisio has reassured Westpoint investors the judgement will not affect “the substance of the cases which we are pursuing in which we are seeking compensation for them”.
Last November ASIC launched civil proceedings against eight Westpoint mezzanine providers for claims amounting to $245 million, with Mr Carey and four other former directors named in the action as personally liable. It also launched cases against five licensed financial planners, with potential claims of $63.2 million.
But ASIC will be able to start new proceedings against mezzanine finance companies involved in Westpoint’s $320 million collapse from the same position in a decision the judge described as “somewhat academic”.
ASIC Chairman Tony D’Aloisio has reassured Westpoint investors the judgement will not affect “the substance of the cases which we are pursuing in which we are seeking compensation for them”.
Last November ASIC launched civil proceedings against eight Westpoint mezzanine providers for claims amounting to $245 million, with Mr Carey and four other former directors named in the action as personally liable. It also launched cases against five licensed financial planners, with potential claims of $63.2 million.