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Which bank will win the legal battle?
Storm Financial Group
- Thread starter Garpal Gumnut
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Which bank will win the legal battle?
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Personally I can't say, however an insight into the outcome of a similar case may be an incentive for those who have yet to bite the bullet and proceed with an action. The judge's view of the responsibilities of a financial advisor to his/her clients will be heartening for those who seem to have been hoodwinked by Storm.
http://www.corrs.com.au/corrs/website/web.nsf/Content/Pub_FS_210704_Financial_Services_Newsletter_2/$FILE/FS%20210704%20Financial%20Services%20Newsletter.pdf
:sheep:
My opinion; your call.
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The best advice we ever got was in Singapore from a old Chinese man, If you want advice about money you should first make sure the the person you are talking to HAS MORE MONEY THAN YOU, if he has less money than you he should Listen to you.
ALL financial advisor's are only SALESMEN, no different than car salesmen, would you give your life savings to a car sales man???
I know this is out of topic, but that advice does not necessary apply to every cases. A lot of highly successful entreprenurs and investors have broke themselve a few times, so would you ignore all of their advices even though they have been "there" before? They might even provide you with advices on why they have failed and how to prevent them next time. It's all about wisdom and what you know, and not necessary experience. I may have less money than a lot of the baby boomers who have made hundred of thousand of dollars through property speculation during the credit boom, but that does not mean they know more about investing than I do.
It's sad that ALL financial advisors are being blamed because of what happened to Storm. While I do agree that most financial advisors are only salesman, especially those who works in the bank and are on pure commission base, there are also those who works for a fee only structure and have "unlimited" product recommendation. (and happily provide u with products with no fees and rebate all commission) These are the one you want to talk to because they are not too limited by what kind of advices they can give you. Unlike those who works for Storm, they are all required to promote their firm's investment strategy by making impractical use of high leveraging. They are there to promote their company's products, regardless of whether it is suitable for their clients or not. Greed simply got to the founders.
Here is a better Chinese proverb,
"He who blames others has a long way to go on his journey. He who blames himself is halfway there. He who blames no one has arrive"
By the way, I can almost understand how hard it is for unsophiscated investors to go against their financial advisors when they request to liquidate their entire investments. Manipulation tactics like fear of missed opportunities and repeated use of false hopes talk can be extremely effective in convincing people. I can certainly understand the angry for not making a firm stand when some of you had made the call to Storm to get out.
So I geninuely hope some of you can recover some of your losts (but highly unlikely). At the very least, the founders will loss everything including their business and I hope they get sued for misleading their clients in risky investments and get thrown in jails for a few years. (and bankrupt them afterward)
The best advice we ever got was in Singapore from a old Chinese man, If you want advice about money you should first make sure the the person you are talking to HAS MORE MONEY THAN YOU, if he has less money than you he should Listen to you.
ALL financial advisor's are only SALESMEN, no different than car salesmen, would you give your life savings to a car sales man???
Pilot. Cassimatis was one of if not the richest person in Townsville. His home was if not the then one of the most expensive. So he actually was able to capitalise on this old chinese saying.
Glen48
Money can't buy Poverty
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Strange how people are prepared to sit in their homes as the price dives loosing hundred's of thousands or have the same with Super thinking one day it will all magically return yet here they want their money back?????
When I was a small boy in primary school, certain crazes would go through the school every so often.
The yoyo craze was one of them....every kid had to have a yoyo.
Then it was autograph books, which were small books with blank pages inside, and 'Autograph Book' emblazoned on the front in large ornate lettering. You'd get all your friends to write an 'autograph' in your book, which was basically a small piece of verse that conveyed a particular message, many of which were lessons for life. Your friend would sign his work, and eventually you'd end up with a book full of handy little rhymes that conveyed useful messages.
Of all the 'autographs' in my book, the one I remember best was...
Love all but trust few
Always paddle your own canoe
I was showing my autograph book to my Dad one night, and when he came to this one he drummed his finger on the page a few times and said 'This is good advice - make sure you always remember it'.
The lesson stayed with me.
I feel pretty sorry for those who have been mauled by the Storm debacle. I hope those of you who are young enough to start over again will make sure you 'paddle your own canoe' in future.
The yoyo craze was one of them....every kid had to have a yoyo.
Then it was autograph books, which were small books with blank pages inside, and 'Autograph Book' emblazoned on the front in large ornate lettering. You'd get all your friends to write an 'autograph' in your book, which was basically a small piece of verse that conveyed a particular message, many of which were lessons for life. Your friend would sign his work, and eventually you'd end up with a book full of handy little rhymes that conveyed useful messages.
Of all the 'autographs' in my book, the one I remember best was...
Love all but trust few
Always paddle your own canoe
I was showing my autograph book to my Dad one night, and when he came to this one he drummed his finger on the page a few times and said 'This is good advice - make sure you always remember it'.
The lesson stayed with me.
I feel pretty sorry for those who have been mauled by the Storm debacle. I hope those of you who are young enough to start over again will make sure you 'paddle your own canoe' in future.
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Thanks for that . I'm going out to get a canoe and the biggest paddle i can find at least this time I WON"T GET STUCK UP SH.T CREEK WITHOUT ONE !
Thanks jifro.... I should have mentioned that we new that and have proceeded that way..
I just find it hard to believe that the administrators can do that, and is just one last kick in the face...
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The best advice we ever got was in Singapore from a old Chinese man, If you want advice about money you should first make sure the the person you are talking to HAS MORE MONEY THAN YOU, if he has less money than you he should Listen to you.
ALL financial advisor's are only SALESMEN, no different than car salesmen, would you give your life savings to a car sales man???
This is the thing thats gotten me about the whole financial adviser concept as well. The ones that are really really good at their "job" will have listened to their own advice and be floating around on a big boat somewhere, or off in Aspen skiing, or saving the world through their charity organisations. Someone that knows the secret to wealth won't be sitting in some bland office wasting their days charging people commissions to push them investment products.
The other thing that amazes me is that people believe that the path to wealth can be obtained by responding to TV commercials. Yes thats right, peolpe spend their whole lives trying to find out how to obtain wealth when all they had to do was what it said in that loud, slick TV commercial from that nice man that wanted to give you everything so much he paid money himself to advertise just so he could find you and help you.
Anyway, this is off topic I suppose and not helpful for anyone caught out by this particular situation.
It certainly shows why the industry needs far heavier regulation - and in a far more formal way as well - they should come up with a standardised investment strategy models and standardised rankings of risk for difference strategies or gearing levels.
It was unbelievably irresponsible to be pushing these huge debt driven strategies to retirees - and anyone doing it should require them to sign a big, bold print disclaimer that they know they are taking a high risk investment strategy.
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Maybe you mean: Which bank will lose the legal battle?
It's up for bets:
http://www.smartcompany.com.au/Free...se-set-to-head-for-the-courts.html?source=RSS
If Slater and Gordon run with the class action on a 30% trailing fee basis my money is on margin lender CBA (losing). I understand that they are also the owners of Storm's responsible entity-Challenger Financial Services Group and Storm's index fund manager-Colonial First State.
For those interested in precedent try googling Newman v Financial Wisdom.
:sheep:
My opinion; your call.
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Hi everyone,
Hot off the press
The voluntary administrators of Storm Financial have sacked Storm’s 115 staff members and announced the closure of the business.
The administrators – Raj Khatri and Ivor Worrell from Worrells Solvency and Forensic Accountants – stated “the company’s income had reduced very significantly over recent months resulting in trading losses being incurred at a rate which the company could no longer absorb”.The administrators said Storm is no longer in a position to transact further business for its clients.
As a result, the embattled financial planning group is hoping to introduce alternative financial advisers to its clients in the near future, but was stressing client information was being kept confidential until clients specifically authorised its release
Hot off the press
The voluntary administrators of Storm Financial have sacked Storm’s 115 staff members and announced the closure of the business.
The administrators – Raj Khatri and Ivor Worrell from Worrells Solvency and Forensic Accountants – stated “the company’s income had reduced very significantly over recent months resulting in trading losses being incurred at a rate which the company could no longer absorb”.The administrators said Storm is no longer in a position to transact further business for its clients.
As a result, the embattled financial planning group is hoping to introduce alternative financial advisers to its clients in the near future, but was stressing client information was being kept confidential until clients specifically authorised its release
prawn_86
Mod: Call me Dendrobranchiata
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Got a link/source for that Jifromoz?
Julia
In Memoriam
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It's your parents who were Storm clients, Monario, not you yourself?
Wouldn't you or whoever was the client have received all the documentation when the loan was made?
It would also be interesting to know, if any of you investors can explain this, what you actually received from Storm in terms of documentation.
e.g. was there a written investment strategy, detailing level of risk?
That would be the most basic expectation I'd have if consulting any financial adviser.
What sort of risk assessment did they do in interview to determine appropriate level of risk?
How did they determine your aspirations/what you wanted the plan to do for you?
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My whole family is with them, and are all exposed. Myself, parents, brother, inlaws, and a long list of friends.
Julia
In Memoriam
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Very sorry to hear that, Monario.
Can you comment on the questions I asked above re risk assessment etc?
...
to all those interested, please follow this link to an exposure list I have begun.
https://www.aussiestockforums.com/forums/showthread.php?t=14074
https://www.aussiestockforums.com/forums/showthread.php?t=14074
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Julia, from reading the stories on this thread, it looks a bit like Storm may have taken advantage of people with very little knowledge of investment or risk.
It seems there are two extremes in this situation. Appears there are those who started with a large amount and threw the lot into Storm to manage. That I don't understand as they surely would have been more investment savvy and diversification didn't seem to come into it.
Then it appears there are those with little to begin with, who simply wanted to improve their financial status while trusting the seductive, slick marketing dished up by Storm (example was given in a link earlier on in this thread). They acknowledge that they knew nothing and that's why they went for help. Would be doubtful if they would have known the right questions to ask.
Hopefully, those that are young enough will learn some valuable lessons - but will be much tougher for retirees...
