Banksia’s lesson: investors, you are essentially alone...

Banksia’s lesson: investors, you are essentially alone

http://www.afr.com/p/personal_finance/smart_money/banksia_lesson_investors_you_are_sRwTQeTdekT71dJdj9nobP

...They said it would never happen again. The collapse in 2005 of property financing firm Westpoint was branded a “national shame” and sparked a royal commission that was meant to overhaul the local regulatory framework and prevent a repeat.

But it has happened again.

The collapse of Banksia Financial Group, which has left $650 million of funds in jeopardy, is irrefutable proof that money lost by investors in Westpoint was largely in vain. More important, it is a timely reminder that individual investors cannot lean on the regulator to protect them....