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ARTICLE · 06 MARCH 2013

Upcoming changes affecting liability of AFS licensees and directors

Clayton Utz
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The area of law imposing personal liability on directors will see two changes affecting the financial planning industry.

AustraliaCorporate/Commercial Law
Randal Dennings
Randal Dennings
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Actions of rogue employees and representatives can in some extreme circumstances lead to directors of Australian Financial Services Licensee companies being found personally liable for their representatives' conduct. Personal director liability in general terms has been highlighted by the Corporations and Markets Advisory Committee ("CAMAC") as an area in need of reform. The area of law imposing personal liability on directors could see two changes affecting the financial planning industry in the medium term.

The first change will be seen in the Future of Financial Advice ("FoFA") reforms. These reforms look to create further obligations on the financial planning industry to better protect customers.

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