Westpoint investors still looking for cash
Two years after the collapse of the Westpoint group investors are still waiting to see any of their cash. The Australian Securities and Investments Commission is conducting a series of civil lawsuits against former Westpoint directors as well as planning firms who convinced investors to put money into Westpoint and says that the proceedings will benefit 85 per cent of those who lost money. However the investors have criticised a system which they say promises investor protection but will probably provide little compensation for their losses. Investor Rod Downie has said that while the ASIC actions are welcome it was a case of closing the gate after the horse has bolted. “I cannot believe after HIH that financial planners weren’t required to have professional indemnity insurance. The financial planning industry is just so full of holes,” he said.
By The Australian Financial Review