ASIC has announced its agreement with Commonwealth Bank of Australia (CBA) to settle its action in respect of loans by CBA to Storm Financial customers.

ASIC will continue its unregistered managed investment scheme proceedings against Storm, Bank of Queensland and Macquarie Bank.

CBA will make available up to $136 million as compensation for losses suffered on investments made through Storm . The compensation will be available to many CBA customers who borrowed from the bank to invest through Storm, including CBA customers who are members of the Sherwood class action that has been brought against CBA.

The $136 million is in addition to payments of approximately $132 million, and other benefits, CBA has already provided to Storm investors under its CBA Resolution Scheme.

CBA has also agreed:

• if, after compensation is applied to an investor’s outstanding Storm-related margin loan, the investor is still in negative equity on their margin loan, the balance of the loan will be written off, and
• an investor granted an interest-payment moratorium by CBA will have that moratorium interest written off.