publications monitor Archive Update on Westpoint case | Update on Westpoint case |
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Litigation may be the only recourse for Westpoint investors to recover their funds if the Federal Court rules that the Financial Industry Complaints Service (FICS) doesn’t have the power to deal with their complaints. A free service, FICS handles complaints under $100,000 against licensed financial industry participants. In line with advice from the Australian Securities and Investment Commission (ASIC), over 300 investors have lodged complaints with FICS about financial advisors that recommended investment in Westpoint promissory notes. However, many financial advisors have raised the defense that the promissory notes were not ‘financial products’ as defined in the Corporations Act and cannot be dealt with by FICS. FICS is currently seeking a decision from Justice Finkelstein on whether or not it has the ability to deal with these complaints, with a decision expected before Christmas. If the court finds FICS does not have the power, then investors need to pursue litigation to recover funds. If you have any queries in relation to Westpoint matters please contact Tony Mylne at This Email address is being protected from spam bots, you need JavaScript enabled to view it or (07) 3292 9715. To read other Monitor articles please click here. |