Storm Financial - “I Didn’t Know”
The attempts by Storm Financial to shift all blame for the demise of their empire and the loss of wealth by so many of their clients would be laughable if it was not serious. They are putting out the view that they were not responsible for monitoring client’s margin loans, it was up to the lenders to do so.
A lender is not licensed to give advice. They can only give you the factual situation and request that you take the appropriate action. It is the adviser who gives the advice and determines the best strategy for the client. Ask any responsible financial planner and they will tell you that the last thing they would want is the lender contacting their client before they had the opportunity to do so. As their adviser it is their responsibility to monitor the state of each loan and to take whatever action possible to prevent a margin call. After all this is part of why you engage the services of a financial planner.
Sure margin loan records may not be always accurate but the Storm advisers had access to the investment fund records and so they knew the correct values (if they cared to check) and they have no excuses.
It is not good enough to say ‘I didn’t know’. If they didn’t, and that is unlikely, they should have and deserve condemnation for it.
POSTED: 30-Sep-2009
October 24th, 2009 at 7:31 am
Excellent article, bookmarked for future referrence
December 1st, 2009 at 10:30 pm
Your blog is full of interesting articles, thanks for good read