The implications of the recent Full Federal Court decision in
ASIC v Westpac Securities Administration Limited [2019]
FCAFC 187 (ASIC v Westpac) are far-reaching for
the financial services industry. The case is, of course, a
significant development in the laws concerning the parameters of
general advice and personal advice. However, the potential impact
on the provision and regulation of financial services more broadly
should be explored.
At its core, the judgment is a practical application of the
"six norms of conduct" set out by Commissioner Hayne in
the Final Report of the Royal Commission into Misconduct in the
Banking, Superannuation and Financial Services Industry. In
particular, the principles of fairness and the provision of
services that are "fit for purpose" are reflected in the
Full Court's findings on personal advice and the obligation to
act efficiently, honestly and fairly.
