Report : Tom Tucker
Friday, 27th January 2012
Content : Senator John Williams, PJC hearing, Matthew Comyn CBA, CGI policies and procedures
Extract – 4 Sept 09 – CFS 66 & 67. On the 4th Sept 2009 Senator John Williams asked the CBA a very simple question, was the data CBA provided to Storm kept “up to date during that critical period?” Ian Narev the now CEO of CBA, falsely answered, “We know that substantially all of them were.”
On the 4th Sept 2009 Ian Narev and Matthew Comyn from the CBA gave evidence under oath to the Parliamentary Inquiry. This evidence attempted to put a spin on the facts implying that once again CBA’s conduct was proper whilst Storm failed in its duties. The main thrust of the CBA’s evidence in the below extracts was that:
1) The CBA sent to Storm 3 files of client data per day.
2) The purpose of CBA sending the data files was to keep Storm updated.
3) The process of sending data files from CBA to Storm was automated.
4) These client data files were substantially accurate.
These claims by the CBA are illustrated in the following extracts from Parliamentary Joint Committee Hearing on Corporations & Financial Services – Fri 4 Sept 09 – CFS 66 & 67
1) The CBA sent to Storm 3 files of client data per day.
It appears that the CBA did in fact send to Storm ‘3 files a day’ of client data and it is this fact that CBA has been trumpeting in its claim that it did the right thing. In its usual way of presenting only the part of the facts that suited it, the CBA very conveniently omitted to mention that the integrity of the data was profoundly corrupt. This could only have led the Parliamentary Committee to a false conclusion.
2) The purpose of CBA sending the data files was to keep Storm updated.
It is unreasonable to expect a client to contact all the relevant fund managers to obtain unit prices and unit balances for their many accounts, gather direct stock information from their broker along with contacting the margin lender to get a loan balance each day for the purposes of accurately obtaining a picture of their overall portfolio. Similarly it would be even more unreasonable to expect Storm to go through this same absurd process every day for its 14,000 clients when CGI / CBA already had all the data consolidated at their end. Storm and clients should not be expected to re-invent the wheel given the amount of work already done by CGI. Sending Storm ‘3 files a day’ and posting the same data on CGI’s website was a far more efficient manner in which to pass on client data for the purpose of the day to day management of a clients’ asset base.
CBA has twisted this need of a consolidated view for asset management purposes into implying that the purpose of keeping Storm updated was to enable Storm to make margin calls (which it can not legally do). The Plain Truth can verify from both CBA and Storm sources that there was never an arrangement between Storm and the margin lender that Storm was required to use this data to make margin calls. In fact if such an ‘agreement’ did exist between CBA and Storm then The Plain Truth is quite certain that CBA would have had no hesitation in producing it to remove the lack of credibility in CBA’s assertion.
3) The process of sending data files from CBA to Storm was automated.
Once again CBA shoots itself in the foot. By admitting that its processes were automated the CBA has exposed itself to the most crucial question of all…‘Why was the CBA Empire system responsible for automatically issuing margin call notices switched off by the CBA for all Storm clients?’ The Plain Truth has been unable to ascertain why the CBA switched off its margin call notice system for Storm clients but can verify that the system was switched off and this act was responsible for most of the damage suffered by Storm clients and Storm itself.
4) These client data files were substantially accurate.
The Plain Truth can verify that it has tested a statistically significant number of CBA’s ‘Storm data feeds’ and expertly compared these data feeds with the actual data over the same periods. The following important discoveries were made:
a) For the period Dec 07 to Dec 08 which included 247 trading days, on average only on 94 of those days did the CBA data reflect any changes. These changes were inclusive of unit price changes and unit transaction updates resulting from redemptions, applications, rebates and dividends. Put more simply…the CBA only updated their data 38% of the time in the period measured. Although the CBA allegedly sent the ‘3 files a day’ to Storm, CBA clearly only refreshed its data when it felt like it. This was also reflected in the CGI website where the data stayed unchanged for 62% of the time on average.
b) Furthermore, even when the CBA data was eventually refreshed and updated files sent to Storm and posted to the CGI website, the data was still incorrect. Accordingly Storm clients fate became inevitable.
Clearly CBA’s data to Storm and clients was only updated some of the time and was wrong all of the time. Messers Narev and Comyn please be warned that The Plain Truth will pursue and expose your lies and half-truths until you admit the COMPLETE TRUTH.
The Plain Truth asks its readers to send in any evidence about lies from any of the banks, particularly CBA. You can forward evidence to The Plain Truth through our ‘contact us’ tab. Thank you.
More importantly please, please help spread the word.
The Editor
The Plain Truth,
PO Box 2783
New Farm QLD 4005
Content : Senator John Williams, PJC hearing, Matthew Comyn CBA, CGI policies and procedures
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