Former Storm Financial clients offered lowest rates

A COMMONWEALTH Bank subsidiary agreed to provide the lowest marginal lending rate to customers of now disgraced investment institution Storm Financial.

Former advisor David McCulloch gave evidence in the Federal Court on Tuesday during a trial where the Australian Securities and Investments Commission is alleging Storm Financial ran an unregistered investment scheme.

Documents shown to the court revealed Storm Financial approached various lending institutions with its proposed business model in the early 2000s.

Mr McCulloch said he sighted a letter from Colonial Margin Lending - a CBA subsidiary - to either Storm Financial or company founder Julie Cassimatis about the terms and conditions of Storm's arrangement with the lending institution.

"I only recall one paragraph," he said.

"Words to the effect, Colonial Margin Lending does guarantee to Storm it will offer Storm clients the lowest marginal lending interest rates in the country."

ASIC alleges the Bank of Queensland and Macquarie Bank supported Storm's unregistered managed investment scheme.

ASIC, which recently settled in a similar action against the CBA, has calculated investors lost about $830 million after Storm's collapse.



HIGH ALERT: 20 fires burn across the state

HIGH ALERT: 20 fires burn across the state

FIRE crews are on standby as 20 blazes burn around Queensland.

Man involved in finger-chopping case back in court

premium_icon Man involved in finger-chopping case back in court

Revolving door of crime after drug disaster

Groups get first look at renovated turf club terrace

Groups get first look at renovated turf club terrace

Perfect weather for Ipswich's Saturday race meeting

Local Partners