Commonwealth Bank Ltd (CBA) and legal firm Slater & Gordon say they will negotiate over former Storm Financial clients who entered into loan agreements with the bank.

As part of the accelerated resolution process, former High Court judge Ian Callinan will act as an independent arbitrator where the CBA cannot reach agreement with Storm Financial clients.

CBA and Slater & Gordon said they would implement the “accelerated resolution process” to achieve a fair and equitable outcome for Storm Financial clients who entered into loan agreements with CBA and or its Colonial Geared Investments offshoot.

“The bank remains committed to an accelerated resolution process for its customers,” CBA said in a statement on Wednesday.

“To expedite this process, the bank is continuing to offer assistance in paying for independent legal and financial advice.

“In addition, the bank is working with law firm Slater & Gordon to implement independent and fair outcomes for customers.”

Storm Financial Ltd ceased trading on January 15 following the company being placed into voluntary administration.

The move by CBA to enter into talks with the high profile law firm comes less than a week after CBA chief executive Ralph Norris admitted the bank’s “shortcomings” in its dealings with thousands of customers affected by the $3 billion collapse of Storm Financial.

The bank on June 17 suspended until August 31 the loan repayments of 2,500 customers who were also clients of the Townsville-based financial planning firm.

Some customers were understood to have been granted loans they were unable to repay.

In a statement on Wednesday, Slater & Gordon said the talks would not prejudice the ongoing Australian Investments and Securities Commission (ASIC) investigation into the Storm Financial collapse.

“CBA has agreed that any clients who participate in the process will still be able to participate in any outcome arising from the ASIC investigation, on the basis that they are placed in no worse position as a result of the participation in the process,” Slater & Gordon said.

CBA and Slater & Gordon say they have nominated a group of Slater & Gordon clients, selected at random, to take part in the resolution process.

Slater & Gordon said CBA had agreed that any client who was still dissatisfied with the arbitrated outcome remained free to pursue any legal remedy available to them.

AAP