International Law

ASIC settles Westpoint actions

By David Jacobson

ASIC has announced that it has reached agreements to settle the actions it has conducted on behalf of 9 Westpoint Group of companies against certain directors of the companies and KPMG.

The action against accountancy firm KPMG was over its alleged negligent auditing auditing of the companies. The civil proceedings were issued under section 50 of the ASIC Act, which enables ASIC to commence proceedings for damages in the public interest.

The investors in Westpoint-related financial products had total capital invested of $388 million outstanding as at January 2006 when the group collapsed. The settlement of these actions will result in an additional recovery for the benefit of investors through the liquidation process of up to an additional $67.45 million.

Full post as published by Australian Regulatory Compliance Review on February 06, 2011 (boomark / email).