LOL.....Good to see a man whose retained his sense of humour in spite of the humourless position that Storm helped to put him in!
Sorry to shout, but if I were face to face with them then that is what I would do, so I'd appreciate it greatly Solly if you could deliver my question in a loud belligerent tone, and if you could "accidentally" spill your cappuccino all over his "lap" so much the better:
bunyip, these are excellent questions, what do you think gg ?
Anybody else got any questions to pose ?
Why doesn't the Professional Indemnity Insurance cover our losses like it should - or was the premium squandered on refuelling the private jet?
Why doesn't the Professional Indemnity Insurance cover our losses like it should - or was the premium squandered on refuelling the private jet?
Apparently Storm's Indemnity Insurance was woefully inadequate.
Damian Scattani of Slater & Gordon has said that even if ID was paid, it would be spread very thinly among Storm clients.
Solly
When or if you come face to face with Cassamatis, you can ask him a couple of questions from me. I already asked him these questions on his website, but in his typically weak and cowardly way he didn't respond.
If you were managing your clients portfolios, why did you let them evaporate into thin air? Why did you let them sit through more than 12 months of one of the worst bear markets in history, without taking any defensive action that would have saved their portfolios from being decimated?
Well of course we all know the answer - selling clients out would have dried up his cash flow, firstly by eliminating Storm's ongoing management fees, secondly by effectively preventing new clients from coming on board with Storm. I mean, if word had got out that Storm were evacuating their clients from the stockmarket, then nobody in their right mind would have walked into Storm and asked to be put into the market.
There were many faults with the Storm model......
too much gearing
excessive borrowings relative to clients capacity to service their loans
no diversification
excessive up front fees.
But the biggest failing of all was Storm's total lack of risk management.
None of the above shortcomings by itself, or even collectively, would have wiped out Storm clients if only there had been prudent risk management in place.
We can blame the banks for selling down the portfolios, we can blame them for excessive lending, we can blame the faulty data late last year, we can blame the stokmarket crash, if we're really gullible we can allow Cassamatis to pull the wool over our eyes with his claim that the economic meltdown and market crash were 'unprecedented', and if we're extremely naive we can believe that nobody saw the crash coming.
But the truth is that if Storm Financial had been doing their job they would have hauled their clients out of the market long before they got anywhere near margin call.
When it's all said and done, it was the gross incompetence of Storm Financial, and in particular their total lack of risk control, that brought Storm clients undone.
So Solly.....if you or anyone else ever come face to face with Cassamatis, ask him that question for me....Why didn't you take your clients out of the market before their portfolios were decimated?
I'm surprised that nobody has yet asked him that question during the Parliamentary Enquiry.
I challenge SICAG to put my second last paragraph on their website.
I see it is reported in The Courier Mail that Ron almost came to fisticuffs with EC over a few issues.
I believe that's a strange position for business associates to take.
Mates there are only three main groups of questions that I would ask Manny if he agreed to meet Solly and myself for an explanatory breakfast in Brisbane.
1. Manny, before I ask my second question do you agree to pay for Solly and my breakfasts.
2. Manny , may I ask you to give the waitress your credit card now please, before breakfast is served , so that she can enter it and your pin into the machine lest you have to leave suddenly.
3. Manny, how could you have been a such a muppet, to think that the sharemarket would continue upwards and onwards in a bulll pattern, continue to leverage your clients, and deny to them the opportunity to convert to cash in the event of a bearmarket.
Thats the nuts of the questions really.
If he stuck about I might also ask him if he was a member of SICAG as he lost a lot too remember.
And I might ask him if he'd sell me his mansion on Cleveland Tce for $754,000 as I want to lighten my RIO holdings by that amount soon..
gg
Apparently Storm's Indemnity Insurance was woefully inadequate.
Damian Scattani of Slater & Gordon has said that even if ID was paid, it would be spread very thinly among Storm clients.
Hang on, is this the same Ron Jelich who wrote in his parlimentary submission that he had a 'very close relationship with his clients?'
'Waaaaa despite my neglect of my customers, and being party to driving most of them into financial ruin due to my own neglect/apathy/greed/laziness, I now might be in a bit of financial poo myself. Despite being a financial adviser in a city of barely ~40,000 people, I pretty quickly amassed a personal fortune of between $15-20 million bucks from trailing commissions and exorbitant fees from my trusting elderly and self-retiree clients.
One of my properties in my $5 million portfolio could be sold....oh the humanity.'
And this clown was waving the flag for SICAG members to 'get the banks, mang! Seek justice!' a few months ago, appearing in the Redcliffe Herald hands aloft triumphant as it was announced Slater and Gordon would be going after the banks.
If they haven't already, SICAG would do well to cut their ties to this germ. Him, Manny, Julie and the rest of the corrupt hedons should be the next ones up on the block having every last asset taken off them to recompense the betrayal of their clients.
STORM Financial's former national business development manager said yesterday he still believed in the investment model that was used by the failed advisory firm.
Brisbane-based financial planner Ron Jelich told an inquiry in to Storm's collapse that heavy borrowing to invest in shares had worked for many clients over 20 years.
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