The corporate watchdog has reached a $2.5 million settlement deal with Glenhurst Corporation and its insurer, QBE, over a class action regarding recommendations of Westpoint Group products.
The deal is the first Westpoint compensation settlement by the Australian Securities and Investments Commission.
The class action, initiated in the Federal Court in 2008, was seeking compensation for Glenhurst clients who had invested in certain financial products issued by companies within the failed Westpoint Group.
The claim alleged that Glenhurst provided negligent advice, engaged in misleading and deceptive conduct and breached its Australian financial services licences.
In June last year, ASIC initiated action against QBE in the Victorian Supreme Court seeking an indemnity under the terms of Glenhurst's professional indemnity insurance policy, in respect of the claims made in the class action.
The settlement is subject to court approval.
ASIC has also reached settlement deals with Masu Financial Management, Professional Investment Services, Bongiorno Financial Advisors and Bongiorno Financial Advisors (Aust), and State Trustees.
