Former Storm adviser to be supervised
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BRISBANE, Nov 21 AAP
November 21 2012, 3:02PM
A former Storm Financial employee will have his work supervised for the next two years following an investigation by Australia's corporate watchdog.
The Australian Securities and Investments Commission (ASIC) announced on Wednesday it had accepted an enforceable undertaking from financial adviser Terrence Webb, who worked for Storm before it folded in early 2009.
Clients of the Townsville-based financial services company lost about $830 million in the collapse.
In a statement, ASIC said its investigations led to concerns that Mr Webb had advised clients to follow a single investment strategy predominately recommended by Storm.
He had failed to warn clients his advice may not have been tailored to meet their specific financial goals, ASIC said.
The commission said it was concerned Mr Webb, who now works for Synchronised Business Services Pty Ltd, may be providing "incomplete or inaccurate" advice to his clients.
Mr Webb has agreed to complete professional development courses as part of his undertaking.
For the next two years he will also be subject to supervision, audit and review of the financial services he provides to clients.
ASIC has banned former Storm employee Stuart Craig from providing financial advice for four years and accepted enforceable undertakings from four other former Storm financial advisers.
The watchdog is currently pursuing Macquarie Bank and the Bank of Queensland through the courts over their involvement in Storm's collapse.
A class action brought against Macquarie and the Commonwealth Bank by investors is also scheduled to be heard this year.