BOQ today announced it has reached an agreement to settle proceedings brought against it by the Australian Securities & Investments Commission (ASIC) and a class action on behalf of borrowers advised by Storm Financial.
Subject to Federal Court approval, the settlement concludes both of the outstanding Storm Financial proceedings against BOQ. These are ASIC’s unregistered managed investment scheme proceedings, which commenced in the Federal Court of Australia in December 2010 and a class action which commenced in December 2012.
the gross payment by BOQ to settle ASIC’s proceedings and the class action is $19.7 million, with $17 million of this to be paid to BOQ customers. The net impact after tax to BOQ will be $22.1 million, which includes all legal costs and an additional provision for remediation costs. This will be normalised in the determination of cash earnings for BOQ’s result for the year ended 31 August, 2014.
