3 August 2019

The Hon Scott Morrison MP
Prime Minister
Parliament House
CANBERRA ACT 2600

Compensation Sterling First Collapse and call for Royal Commission into the Australian Securities and Investment Commission

 

Dear Prime Minister

I follow up my letter of July 13th concerning our loss of $254000 and our retirement accommodation due to the Sterling First collapse. It followed similar correspondence to ASIC chairman, Mr James Shipton, and the Federal Treasurer, the Hon. Josh Frydenberg concerning the compensation we believe we are urgently due.

Our only direct response so far has been a letter from Treasury telling us to take our claim to the Australian Financial Complaints Authority (AFCA). However, we are advised that this would be a waste of time as a history of similar complaints reveals that, for the most part, such submissions are investigated, mined for data and then dismissed.

The need is urgent as this money represents our carefully planned accommodation security, without which we face the prospect of homelessness. We are now effectively paying rent all over again to maintain the roof which we were assured was already paid in advance for up to 40 years. Similar is repeated for the 100 householders like us who trusted the scheme with false assurances of its safety. Due diligence was useless in the face of ASIC’s inaction with regard to Sterling First and its derivative companies.  Further, tonight we learn the publicly promised internal investigation by ASIC was not and will not be initiated! 

 

We repeat our appeal for your immediate intervention for urgent return of our monies from federal reserves to ourselves and all others affected by the Sterling First collapse as this is a financial disaster borne of federally preventable and arguably criminal negligence.  We also call for a Royal Commission into ASIC with a view to restoring its proper function. 

 

After a lifetime of “having a go” as Australian taxpayers, we do not think it is too little to expect that government sanctioned regulators such as ASIC do their proper work of consumer protection.  Then we can feel assured of “getting a go.”


Yours sincerely