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.



Battle for lucrative army defence contract

premium_icon Battle for lucrative army defence contract

$15 billion contract could create thousands of new jobs

Brave boy battling epilepsy says it won't control his life

premium_icon Brave boy battling epilepsy says it won't control his life

Ipswich has its own Purple Heroes, Oliver Sheppard and mum Codie

New estate celebrates significant resident milestone

premium_icon New estate celebrates significant resident milestone

On Saturday a special morning tea was held to celebrate