ASIC has reached a settlement of its Federal Court proceedings against Queensland-based financial services firm, Strategic Joint Partners (SJP).
The settlement involves a claim for compensation on behalf of SJP clients who invested in the failed Westpoint Group of companies and is one of eight obtained by the regulator.
SJP clients will receive more than $1.39 million in compensation, pending a final sign-off by the Court.
The settlement was reached without any admission of liability by SJP.
In March 2008, ASIC commenced proceedings against SJP following concerns the firm had been negligent and had breached the conditions of its Australian financial services licence in providing advice to its clients.
The Court has now ordered ASIC to communicate with all group members, providing details of the compensation they will likely receive and providing them with an opportunity to object to the settlement.
After group members have had time to consider their position, ASIC will file a further application seeking final Court approval of the settlement.
The Court has agreed to hear the application for final approval on December 23, 2011.
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