BOQ settles Storm Financial proceedings

In a statement released via the ASX website yesterday, BOQ said the bank's settlement – which is subject to Federal Court approval – will conclude both of the outstanding Storm Financial proceedings brought against it by ASIC.

“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,” a statement from the bank said.

“The settlement agreement includes acknowledgement by all parties that BOQ denies any wrongdoing in relation to both proceedings,” the statement said.

ASIC has welcomed its agreement with BOQ and says it will bring an end to the existing litigation the regulator initiated to obtain compensation for Storm investors.

“BOQ's compensation is intended to ensure each BOQ investor who takes part in the settlement will be able to get compensation of approximately 45 per cent  of that part of their total loss allocated to BOQ under the ASIC compensation model,” a statement from ASIC said.  

BOQ acting chief executive Jon Sutton said the bank will now work towards providing certainty to the customers who were involved.

“We have worked closely with Storm customers over the last five years and will continue to consider their individual circumstances,” Mr Sutton said.

“Eligible customers will be contacted by the class action lawyers in the coming months and will have the option of accepting a settlement payment or staying on their existing repayment arrangements.”

BOQ’s settlement follows the compensation payments made by CBA, of up to $136 million, and by Macquarie Bank, which paid $75 million.