The Federal Government has launched a parliamentary inquiry into recent corporate collapses in Australia after the collapse of Storm Financial in January ruined thousands of investors.

Superannuation Minister Senator Nick Sherry says the committee will explore the role played by financial advisers, remuneration structures such as fees and commissions, and the regulatory environment, including licensing arrangements.

The launch comes after NSW Nationals Senator John Williams last month gave notice in the Senate that he will next week move to establish a joint select committee to inquire into banking and financial practices.

“While it’s not the catalyst for the inquiry, the collapse of Storm Financial and the devastating effect on thousands of ordinary investors is just another reason why the whole financial industry must be scrutinised,” Senator Williams said.

Senator Williams says at the Senate Economics Committee Estimates hearing last Thursday, the Australian Securities and Investments Commission (ASIC) admitted it had received four complaints against Storm during 2006/07 but after investigation did not consider it “a smoking gun”.

“Now we find it was an atomic bomb,” he said.