Three banks must defend allegations of running an unregistered investment scheme following the collapse two years ago of Storm Financial.On Friday, ASIC said Commonwealth Bank, Bank of Queensland and Macquarie "participated in the operation" of the Storm business model.The Australian Securities and Investments Commission said it will initially seek court rulings over the existence of the scheme. Parties that participated in the operation will be named.If successful ASIC will seek compensation for investors.CBA remains an ASIC target in spite of setting up a dispute resolution process that has so far reached agreed terms with 85 per cent of those taking up the option.BOQ and Macquarie have to date continued to defend their conduct as suppliers of credit to customers advised by Storm.ASIC will also seek declarations of unconscionable conduct, damages and compensation, as well as orders setting aside loans against Bank of Queensland and Macquarie.The owner of the North Ward franchise of BOQ, a business known as Senrac, will also defend the case.ASIC will allege that Emmanuel Cassimatis and Julie Cassimatis breached their duty as directors by devising a business model that "involved providing commoditised financial advice to investors that failed to take into account the personal circumstances of individual investors."The regulator is seeking penalties against the Cassimatises and a life-time ban on serving as a company director or working in financial services.