More financial institutions are expected to fail

The collapse of more financial service providers is predicted by investors who believe so while industry loopholes remain closed. One of such collapses occurred with Storm Financial, discontinuation of activities of which resulted in the loss of life savings of thousands of investors.

After the collapse of Storm Financial, claims have been brought by some clients of Storm Financial who had concluded loan agreements with Commonwealth Bank. Former High Court judge Ian Callinan has been appointed to show assistance in adjudication of these claims and his nomination was welcomed by the president of the Australian Investors’ Association Jolyon Forsyth. 

Despite the severe conditions of the present situation, the Australian Investors’ Association says that financial advisers remain eligible for commissions.