The Australian Securities and Investments Commission (ASIC) rolls into action its legal suits against parties allegedly involved in the $3 billion Storm Financial meltdown following the deadline's lapse for banks to strike compromise deals with up to 14,000 investors affected by the collapse.

In a statement released on Wednesday, ASIC named as respondents the Commonwealth Bank of Australia (CBA), the Bank of Queensland (BOQ) and Macquarie Group, which all failed to provide compensation deals to their clients who lost money when Storm Financial went under in March 2009.

Also hailed to the court were Strom founders Emmanuelle and Julie Cassimatis, who ASIC said connived with banks in running the illegal management investment scheme that eventually turned out as Australia's biggest corporate shake down.

ASIC chair Tony D'Aloisio said in his statement that the legal actions are meant to collect payments for investors who lost their fortunes due to the investment scheme.

D'Aloisio has earlier stressed that he was looking forward for a compromise agreement that would have easily resolved the problem but he admitted that "discussions did not result in a satisfactory outcome and it has been necessary for ASIC to bring these proceedings."

The problems arose when Strom Financial enticed mostly Queensland retirees to invest and purchase shares of the company, who in turn acquired bank loans against their properties and bought Storm securities.

The investment collapsed at the height of the global financial crisis and hordes of investors saw their savings and holdings wiped out by the turmoil, eventually pointing blame to banks that processed and approved the loans.

Macquarie Bank has reportedly tried veiling the failure while CBA conceded limited liability and sued for deals with some affected investors, which ASIC has earlier labelled as inadequate overtures, a claim bolstered by the fact that hundreds of investors have also lodged lawsuits against CBA.

However, CBA has contended that the compromise deals offered to its clients affected by Storm's collapse carried provisions that do not prevent investors from also seeking compensations through any actions pushed by ASIC.