On 14 September 2012, ASIC entered into an agreement with the Commonwealth Bank of Australia (CBA) for CBA to make available up to $136 million as compensation for losses suffered on investments made through Storm Financial Limited (Receivers and Managers Appointed) (In Liquidation) (Storm).
On 17 September 2012, this agreement became binding on ASIC and CBA, when ASIC's proceedings against CBA were dismissed by the Court.
The compensation will be available to many CBA customers who borrowed from the bank to invest through Storm, including CBA customers who are members of the Sherwood class action that has been brought against CBA.
Note: The ASIC/CBA settlement has now been finalised.
The following documents provide further explanation of the settlement:
- ASIC responds to Storm investors' queries regarding the ASIC/CBA Settlement, 16 April 2013
- ASIC and CBA settlement update – CBA commences sending compensation offer letters to customers, 27 February 2013
- Settlement frequently asked questions and answers (FAQs) (PDF file) (Last updated 8 March 2013. The Settlement FAQ is also set out below)
- Media release, 12-227MR (Date published: 14 September 2012)
- Example of ASIC Compensation Model (Date published: 4 October 2012)
- Examples of Compensation Outcomes (Date published: 4 October 2012)