Investors are predicting the collapse of more financial service providers unless industry loopholes are closed.
Despite a Senate inquiry into financial services, the Australian Investors’ Association says financial advisers remain eligible for commissions and point to a lack of investor education.
Storm Financial ceased trading on January 15 this year, causing thousands of investors to lose their life savings.
Former High Court judge Ian Callinan has been called in to help arbitrate an agreement between Storm Financial clients and the Commonwealth Bank, which entered into loan agreements with some Storm Financial clients.
The association’s president Jolyon Forsyth welcomed the appointment of Mr Callinan but said it was important that swift changes were made to the financial services sector.
“AIA remains concerned the same preconditions which allowed the Storm Financial collapse to occur are still in place,” Mr Forsyth said.
“AIA opposes the payment of commissions to financial advisers and we made that point in our written submission to the (Senate) inquiry.”