Storm Financial founder fined $20,000

Storm Financial founder Emmanuel Cassimatis will be expelled from the Financial
Planning Association (FPA) and fined $20,000 for breaches of its code of ethics and
rules of professional conduct.
Townsville-based Storm Financial collapsed in 2008 at the height of the global
financial crisis, causing investors to lose up to $3 billion.
Many were burned after they took Storm's advice to borrow against their homes to
invest in the share market.
After an extensive investigation, the FPA found Mr Cassimatis guilty on four charges
brought under its disciplinary regulations.
This includes Mr Cassimatis making misleading representations to a retiree couple
about rates of return in an attempt to present the proposed investment strategy in
the best possible light, and so influence them to invest in the Storm Index Funds.
The FPA also said he breached rule 110 in making oral recommendations to the same
clients without a suitable strategy or plan based on relevant information collected
and analysed.
The FPA said he sent a general client letter to the same clients recommending they
switch their investments to cash without due consideration of the clients' personal
circumstances.
Mr Cassimatis was a general member at the time of the complaint, FPA said.