Westpoint

The Australian Securities and Investments Commission (ASIC) Westpoint website has now been shut down. ASIC is moving to the final phase of its Westpoint compensation actions as the majority of ASIC's litigation to benefit Westpoint investors has now come to an end.

On 1 February 2011 ASIC settled the Federal Court actions it had been conducting on behalf of nine Westpoint Group companies against KPMG, the former auditor of those companies and three persons who were appointed as, or are alleged to have been, directors of those companies. Proceedings against two other former directors were resolved during 2010.

The settlement of these actions resulted in a recovery for the benefit of investors through the liquidation process of up to $67.45 million.

For any queries on Westpoint matters please contact ASIC via email at: westpointinvestorliaison@asic.gov.au or by phone on 1300 300 630.

Westpoint investors can also contact the liquidators:

Brighton Hall Securities Pty Ltd (Brighton Hall)

In 2009 the Australian Securities and Investments Commission (ASIC) commenced representative proceedings in the Federal Court of Australia against Brighton Hall (the Proceedings). 

A number of people were identified by ASIC as group members in the Proceedings (Group Members).

The liquidator of Brighton Hall has since advised ASIC that he intends to distribute any entitlement Group Members may have arising out of the Proceedings through the liquidation of Brighton Hall.

On 28 August 2015 ASIC wrote to Group Members providing an update on the matter (ASIC's Letter). If you have not received ASIC's Letter please email westpointinvestorliaison@asic.gov.au  and in the subject line please write "Request for ASIC letter to Brighton Hall investors dated 28 August 2015"

If you have changed your address recently, in the email please also include the following information: Your full name (in the case of joint investors the full name of each investor), previous address, current address, email address and any phone contact details. ASIC will endeavour to send the ASIC Letter to you soon as possible following receipt of your email.  The ASIC Letter will be sent via email as an attachment. If you would prefer that the ASIC Letter be sent in the mail then please indicate this in your email.

Clink on the link here to find a copy of the letter dated 28 August 2015. Please note that the letter in the link below does not contain all of the relevant attachments necessary for Group Members to determine their actual entitlement. In order for a Group Member to receive a copy of their letter outlining their relevant entitlements they will need to follow the steps outlined above.

If you require additional information regarding the above, please contact ASIC's Customer Contact Centre on 1300 736 419 or by email at westpointinvestorliaison@asic.gov.au.

Summary of the Westpoint collapse and ASIC's actions

The investors in Westpoint‐related financial products had a total capital invested of $388 million outstanding as at January 2006 when the Group collapsed.

ASIC commenced a number of actions to claim compensation. ASIC's actions against State Trustees Limited and a number of financial planners have produced settlements in excess of $25.5 million.

The settlement of the proceedings against KPMG and the Westpoint directors means the total amount recovered as a result of ASIC's compensation litigation will be up to $92.95 million.

Another $49.2 million obtained through the liquidation process has also been distributed, a figure which is expected to reach $56 million. Returns from Westpoint companies not in liquidation are expected to reach $22.5 million.

In all, investors are expected to receive a return of around $160 to $170 million of the $388 million in losses. 

ASIC compensation action settlements


Date

Action settled

Settlement account

November 2008

Masu Financial Management Pty Ltd

The terms of this settlement remain confidential between the parties

September 2009

Professional Investment Services Pty Ltd

$5.9 million

November 2009

Bongiorno Financial Advisors Pty Ltd
Bongiorno Financial Advisors (Aust) Ltd

$2.6 million

December 2009

State Trustees Limited

$13.5 million

May 2010

Glenhurst Corporation Pty Ltd, and its insurer, QBE Insurance (Australia) Ltd

$2.5 million

September 2010

Barzen Pty Ltd (formerly Dukes Financial Services Pty Ltd) and Mr Joseph Dukes

$1 million

February 2011

Directors' and auditor's actions

Up to $67.45 million

Up to $92.95 million

Summary

Total losses $388 million
Estimated recoveries from the liquidation process and Westpoint companies not in liquidation $78.5 million
Compensation from ASIC's actions Up to $92.95 million
Total estimated return between $160 and $170 million

Other Westpoint milestones

  • March 2010 – Queensland unlicensed adviser convicted and sentenced to six months imprisonment, with an order that he be released after entering a $1,000 good behavior bond for three years after pleading guilty to an ASIC charge.
  • August 2010 – Mr Graeme Rundle, the former Chief Financial Controller of the Westpoint Group of companies, was committed to stand trial in the Sydney District Court in relation to two criminal charges brought by ASIC. It is alleged that in May 2004, Mr Rundle made false statements to a financial institution in support of an application for a $71 million credit facility to fund a Westpoint building project known as the Scots Church Development on York Street in Sydney. Each offence carries a maximum penalty of five years’ imprisonment. The trial is listed to commence on 9 May 2011.
  • November 2010 – Adelaide financial planner jailed for six months after being found guilty of an ASIC charge. On release, the person charged will enter a $1,000 good behaviour bond for three years.
  • Twenty-three licensed financial advisers, four unlicensed advisers, and one corporate entity who advised on Westpoint products have been banned from providing financial services


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Last updated: 23/12/2016 04:56