CBA commences sending compensation offer letters to customers
ASIC and CBA settlement update – CBA commences sending compensation offer letters to customers
27 February 2013
On Wednesday 13 February 2013, the Commonwealth Bank of Australia (CBA) commenced sending notification letters to make compensation available to many of its customers who borrowed from CBA to invest through Storm Financial Limited (Receivers and Managers Appointed) (In Liquidation) (Storm), and who suffered losses on those Storm investments.
The compensation of up to $136 million (in addition to the $132 million which CBA has already provided to CBA customers under CBA's resolution scheme) is being made available to the CBA customers as part of the settlement agreement reached between ASIC and CBA on 14 September 2012 (refer: 12-227MR ) (ASIC/CBA Settlement).
CBA will also send to those investors who are not eligible for compensation a letter setting out that fact and explaining why.
CBA have informed ASIC that CBA intends to send notification letters to over 500 CBA customers in February 2013, and approximately 1,000 by mid-March 2013, and will continue sending the remainder of notification letters steadily. ASIC and CBA expect that all notification letters, including those to investors who are not eligible to receive any further compensation under the ASIC/CBA Settlement, will be sent within the next 2 to 3 months.
ASIC is in the process of informing CBA customers who invested through Storm and who have inquired with ASIC whether or not they are eligible to receive any further compensation under the ASIC/CBA Settlement. Investors who seek this information should refer to Question 19 in the ASIC/CBA Settlement Frequently Asked Questions (FAQ) document for details.
Storm investors can visit the "ASIC and CBA Settlement" section of ASIC’s Storm investor website if they have questions about the settlement.
Storm investors who are unable to access the website can also call ASIC’s Client Contact Centre on 1300 300 630 to request a printed copy of the information on the website.