ASIC has released a report outlining enforcement actions in line with its priorities taken during the July to September quarter (REP 753).
During the quarter, in Australian Securities and Investments Commission v Dixon Advisory & Superannuation Services Ltd [2022] FCA 1105 the wealth management firm Dixon Advisory was ordered to pay a $7.2 million penalty for breaches of its best-interest obligations.
In Australian Securities and Investments Commission v AMP Financial Planning Proprietary Limited [2022] FCA 1115 the Federal Court ordered AMP to pay a total of $14.5 million in penalties to be paid in relation to 1,452 superannuation members who were charged fees for services that were not provided.
ASIC also issued its first design and distribution obligations (DDO) stop order in July.
Subsequently ASIC commenced the first DDO civil penalty action in the Federal Court against Firstmac Limited, a financial product distributor, for alleged breaches of the design and distribution obligations.
More recently ASIC commenced proceedings in the Federal Court against insurance company OnePath Life Limited, alleging it failed to comply with its duty to act with utmost good faith during claims handling and seeking financial penalties for a breach of this duty.
ASIC’s approach to enforcement is set out in information sheet (INFO 151).
ASIC RG 100 deals with Court enforceable undertakings, RG 98 discusses ASIC’s powers to suspend, cancel and vary AFS licences and make banning orders and RG 218 covers Licensing: Administrative action against persons engaging in credit activities.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
