Please Note: This is not advice to anyone affected by the current issues with Storm Financial. Below is merely a check list of things you should do to make sure you are fully aware of your current position and the options which are available to you.
If you are concerned about your personal financial position please collect the information out line in section A and then seek your own financial and legal advice. In part B we have included some people who you should contact in regards your position as they are already dealing with a number of Storm Clients.
1. Obtain up to date statements from all of the managed funds you have invested in, the common ones are Macquarie Bank, Commonwealth bank, Colonial First State and MLC. Please note you should go directly to the Fund Manager for this information. The contact details will be on your last statement, so will your account number.
2. Chase up an up to date statement from your Margin Lender. Please note you should go directly to the Fund Manager for this information. The contact details will be on your last statement so to will your account number.
3. Statements of Advice - before any action is taken on any of your accounts you should have received a statement of advice from Storm. Make sure you have these if not follow up with your Storm adviser to obtain a copy of these.
4. If money has been taken out of your super and put into geared products you will need the Statement of Advice which Storm provided to you to seek approval to do this.
5. Colonial Margin loan - you need to get in contact with them and find out two things,
Are there any fees to pay out the loan, if so how much and can these be waived? (My view is that any fees should be waived and I am sure that if pressed hard enough they will waiver the fees) Second find out how much they will rebate you for the prepaid interest for early pay out of the loan. This is real cash which will come back to you.
6. Once you have all of the above information make clear notes on the progression of how your account got to such a state, the information you need will be in the Statements of Advice.
1. Contact , the web site is below, the number is 1300 78 08 08. They will let you know if Storm has a case to answer and as such if you have a chance of receiving some funds back.
2. Connolly Suthers are lawyers who already are acting for Storm affected clients, contact them. They are local and situated in Flinders Street. Their contact number is 07 4771 5664
The above actions are not in vain, if you have been given wrong advice which has in turn caused you a loss, you have the right to seek compensation. Licensed securities dealers must have insurance to cover them for such losses to their clients.
Second, if you have prepaid interest on your margin loan you will be entitled to a refund on paying out the loan; under the circumstances I would also expect that your margin lender would waiver any pay out fees. Again this is real money in your hand. So now is the time to act quickly.
Getting back into the market
At present the clients I have spoken to have all of their investment in cash, the amount they hold in cash is the same as the amount owning on their margin loan. In this situation you are unable to reenter the market unless you put in more capital.
Eg: If you have a $100,000 in cash and a $100,000 margin loan you would need to put in capital of $35,000 if you wanted to buy back into an index fund. At this level you would still be very close to another margin call.
When you need advice, we are always ready to listen and help.
Give us a call (07) 4771 457