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ARTICLE · 14 NOVEMBER 2017

LimeLight Issue No. 80

Gilchrist Connell
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ASIC enforced best interests and appropriate advice duty laws pursuant to FoFA obligations under the Corporations Act.

AustraliaFinance and Banking
Alex Haslam
Alex Haslam
Katherine Czoch
Katherine Czoch
Justine Siavelis
Justine Siavelis
Nicholas Ben
Nicholas Ben
Tim Graham
Tim Graham
Author LinkedIn connections
  • ASIC successfully enforces best interests and appropriate advice duty laws in Federal Court
  • Australian Securities and Investments Commission, in the matter of Golden Financial Group Pty Ltd (formerly NSG Services Pty Ltd) v Golden Financial Group Pty Ltd (No 2) [2017] FCA 1267

Introduction

The Federal Court of Australia has handed down the first civil penalty to an Australian Financial Services Licensee for breaching the "best interests" and "appropriate advice" duties under the Future of Financial Advices (FoFA) reforms introduced into the Corporations Act 2001 (Cth) from 1 July 2013.

By pursuing pecuniary penalties against NSG Services Pty Ltd (now Golden Financial Group Pty Ltd) (NSG), the Australian Securities & Investments Commission (ASIC) sent a clear message to the Australian financial services industry as to the serious consequences to be faced by licensees that fail to comply with their FoFA obligations.

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