Stormin_Norman
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he probably didnt want to give the investors the bad news they had nothing; so just waited till the banks did it.
Storm Financial Group
- Thread starter Garpal Gumnut
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he probably didnt want to give the investors the bad news they had nothing; so just waited till the banks did it.
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For as long as fees are determined as a percentage of the amounts invested, there will always be a sceptic wondering about independence of advice given by the "professional" to the client.
The blame game which has ensued since the end of last year will continue, and doubtless Storm will be the bad guy (rightly or wrongly), but the issue of true independence is not being questioned sufficiently.
Consider for example true professionals such as accountants and solicitors. These are not charging percentages of amounts, rather for the time and expertise employed in the service. Some solicitors even say no win no fee. So why not have planners say no gain, no fee - or even refunds?
It's time for the industry to self regulate properly, or the government to step in and do it for them. By the way, standing behind a statement of advice should not be regarded as sufficient evidence that the client understands the true risks of the plan before them.
Perceived independence is as important as actual independence.
The blame game which has ensued since the end of last year will continue, and doubtless Storm will be the bad guy (rightly or wrongly), but the issue of true independence is not being questioned sufficiently.
Consider for example true professionals such as accountants and solicitors. These are not charging percentages of amounts, rather for the time and expertise employed in the service. Some solicitors even say no win no fee. So why not have planners say no gain, no fee - or even refunds?
It's time for the industry to self regulate properly, or the government to step in and do it for them. By the way, standing behind a statement of advice should not be regarded as sufficient evidence that the client understands the true risks of the plan before them.
Perceived independence is as important as actual independence.
Interestingly in todays Townsville Daily Bulletin, two pages after the article on page 3 about the retired couple loosing all their money, blaming the bank etc etc, there was 1/4 page add about attending an "investment seminar" and trading in what appeared to be financial synthetics.... make lots of money if the ad is to be believed, I wonder how many will have a go at that and take them at thier word ? and so the World turns.
Julia
In Memoriam
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Perhaps my expectations were unrealistic, but I found the interview disappointing. Cassimatis should have been put properly on the spot with quotes of actual LVR's reported by clients, and examples of the excessive leveraging given.
As it was, Cassimatis' statement that it would all have been just fine had the CBA not prematurely acted was pretty much allowed to stand.
Pity the CBA didn't choose to participate but I suppose they will be keeping their comments for where it matters.
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Yeah I agree it was a pretty soft interview - probably negotiated up front? (I'll do an interview if you agree not to go too hard).
I agree it was a disappointment, he might surprise everyone and make a appearance tomorrow night at the SICAG meeting
Im sure there would be alot of storm clients eager to ask those hard questions.STORM CLIENT: I'm embarrassed that this happened - that I've done this to my family, yes. Let down? Yes.
PETER MCCUTCHEON: Let down by whom?
STORM CLIENT: I don't know. Someone - someone's dropped the ball.
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Amazing isn't it, that some of those former Storm clients truly don't seem to understand how it happened. With regard to the client quoted above, he appears to be genuinely unaware that he himself is one of those people who 'dropped the ball', firstly, by not making himself fully conversant with the ins and outs of margin lending and the fearsome risks it can involve. And secondly, by not having any input into the management of his investments.
Mind you, it's a bit hard to make any intelligent input if you have virtually zero knowledge. But there's no excuse for having zero knowledge.
A 73 year old man was interviewed on my local TV station tonight. Former army officer, put half a million dollars under management with Storm when he retired some years ago. Got to a net worth of 4.6 million but has now been completely wiped out.
He and his wife were still singing the praises of the Storm principals, saying they did nothing wrong and had made every effort to look after the interests of their clients. Clearly, this is another bloke who just had no concept of the risks associated with margin lending, and how over-gearing a margin loan can be disastrous. He appeared to be totally unaware that over-gearing was probably the primary cause of his downfall.
Meanwhile, that slimy lawyer at the Storm meeting was beating the drum and doing his best to promote outrage among Stormers by telling them what they wanted to hear. That law firm must be just about drooling at the mouth in anticipation of the juicy bounty they'll get from all this.
PETER MCCUTCHEON: Let down by whom?
STORM CLIENT: I don't know. Someone - someone's dropped the ball.
-------------------------------------------------------------------------------------------------
Amazing isn't it, that some of those former Storm clients truly don't seem to understand how it happened. With regard to the client quoted above, he appears to be genuinely unaware that he himself is one of those people who 'dropped the ball', firstly, by not making himself fully conversant with the ins and outs of margin lending and the fearsome risks it can involve. And secondly, by not having any input into the management of his investments.
Mind you, it's a bit hard to make any intelligent input if you have virtually zero knowledge. But there's no excuse for having zero knowledge.
A 73 year old man was interviewed on my local TV station tonight. Former army officer, put half a million dollars under management with Storm when he retired some years ago. Got to a net worth of 4.6 million but has now been completely wiped out.
He and his wife were still singing the praises of the Storm principals, saying they did nothing wrong and had made every effort to look after the interests of their clients. Clearly, this is another bloke who just had no concept of the risks associated with margin lending, and how over-gearing a margin loan can be disastrous. He appeared to be totally unaware that over-gearing was probably the primary cause of his downfall.
Meanwhile, that slimy lawyer at the Storm meeting was beating the drum and doing his best to promote outrage among Stormers by telling them what they wanted to hear. That law firm must be just about drooling at the mouth in anticipation of the juicy bounty they'll get from all this.
Stormin_Norman
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he probably only agreed to appear to answer pre-agreed questions and pre-agreed questions only.
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Someone did indeed drop the ball. But I think what's more important is to play the ball and not the man!
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Geez thats a fair bit of money for a concrete box with some views and no yard. You could have bought half of North Ward with that sort of money 10 years ago.
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Woops - I realised that remark was a bit negative on the location - the views from Castle Hill over the bay and islands are truly spectacular and pretty unique throughout North Qld.
Here in Sydney we're a bit spoilt with topology, water and views so there are thousands of homes that sport them - and you can land a home here with a spectacular harbour or ocean view for that sort of money - hence my surprise at the price.
Here in Sydney we're a bit spoilt with topology, water and views so there are thousands of homes that sport them - and you can land a home here with a spectacular harbour or ocean view for that sort of money - hence my surprise at the price.
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I have been with my advisor for over 18yrs. She had changed from MLC to Ozdaq securities and then Storm until she retired. When looking through the paperwork I saw Ozdaq Securities was signed off by Julie Cassamattis?
Was Ozdaq securities the same company and then changed name to Storm?
I have the same story as most. But I have survived for over 18yrs with moderate LVR's. Never redeemed anything always reinvested. It seems over last 2-3yrs the lending became aggressive by storm. Push, push push. But responsibility is mine. Although I was always assured the interest payments were being met by the portfolio and it was still growing. Didn't know how to do figures to check. Left it there. Other than sad I feel highly embarrassed. This event has financially wiped out two generations of my family.
Sorry to hear about your situation, Yes Storm was once called Ozdaq Securities and before that I think Cassamattis Securities same people same plan different name.
I admire the courage and honesty of you and a handful of others who have admitted the responsibility is yours.
Despite the forthright views I've expressed about the whole Storm thing, I feel truly sorry for you Stormers and the unfortunate situation you find yourselves in.
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Did not see the show, but it will be most interesting to see a few things:
*EXACTLY how and who managed the margin on the Storm badged funds, this would surely be defined by written contract, as there are many funds of similar type. Buying and selling stock would take place regularly to balance the index & margin, redemptions etc....so who did that?
* Did Cassimatis have there money tied up in there own products?
ie True Believers
if they did they are probably close to bankrupt themselves, they also might have given directors guarentees or security to their primary lender, whatever the case, they must be feeling sick as a dog hit by a truck
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Monday 9th February 8:30pm ABC1
Four Corners opens for the year.
Think the program might be about the Storm.
Four Corners opens for the year.
Think the program might be about the Storm.
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Storm Financial software provider still active
"Ignite Financial Systems and Research, an associate company of Storm Financial, has moved to the collapsed dealer group’s Brisbane offices.
According to Ignite’s application for an AFS licence, it is now based at No.1 Breakfast Creek Road, Newstead in Brisbane."
"An ASIC spokeswoman confirmed the regulator had received an application for a financial services licence from Ignite.
The Ignite licence application is still being reviewed by ASIC.
“We are assessing the application, but no decision has been made about granting a licence,” she told Money Management."
"Ignite Financial Systems and Research, which changed its name from Storm Research in 2007, made an application for a licence before Christmas.
At the time of the name change, Emmanuel Cassimatis was a director of the company and Michael Fenech was managing director.
Money Management is in the process of confirming if either is still involved with the company.
A lodgement last Friday changing some of the company details has been sent back to the company for clarification, an ASIC spokeswoman said."
Full Story by John Wilkinson from Money Management here:
http://www.moneymanagement.com.au/article/Storm-Financial-software-provider-still-active/435983.aspx
"Ignite Financial Systems and Research, an associate company of Storm Financial, has moved to the collapsed dealer group’s Brisbane offices.
According to Ignite’s application for an AFS licence, it is now based at No.1 Breakfast Creek Road, Newstead in Brisbane."
"An ASIC spokeswoman confirmed the regulator had received an application for a financial services licence from Ignite.
The Ignite licence application is still being reviewed by ASIC.
“We are assessing the application, but no decision has been made about granting a licence,” she told Money Management."
"Ignite Financial Systems and Research, which changed its name from Storm Research in 2007, made an application for a licence before Christmas.
At the time of the name change, Emmanuel Cassimatis was a director of the company and Michael Fenech was managing director.
Money Management is in the process of confirming if either is still involved with the company.
A lodgement last Friday changing some of the company details has been sent back to the company for clarification, an ASIC spokeswoman said."
Full Story by John Wilkinson from Money Management here:
http://www.moneymanagement.com.au/article/Storm-Financial-software-provider-still-active/435983.aspx
