Australian Securities and Investments Commission v Select AFSL Pty Ltd (No 3)

• Jurisdiction: Australia Federal only
• Court: Federal Court
• Judgment Date: 04 July 2023
• Neutral Citation: [2023] FCA 723
• Date: 04 July 2023

FEDERAL COURT OF AUSTRALIA

Australian Securities and Investments Commission v Select AFSL Pty Ltd (No 3) [2023] FCA 723

File number(s):	NSD 1447 of 2019
Judgment of:	ABRAHAM J
Date of judgment:	4 July 2023
Catchwords:	CORPORATIONS – conflicted remuneration – consumer law – banking and financial institutions – directors’ duties – contraventions by corporate defendants and individual defendant – numerous breaches of Corporations Act 2001 (Cth) and Australian Securities and Investments Commission Act 2001 (Cth) – assessment of pecuniary penalties and other relief – where individual defendant did not give evidence during liability hearing – where defendants did not deliberately contravene laws – where defendants sought to downplay seriousness of conduct – where insufficient evidence to determine financial position of defendants – where defendants have no prior contraventions of similar conduct – where failures in compliance system to be seen in context of competitive sales environment – where deterrence must be dominant consideration – advertising orders not made – declarations, restraining orders, probation order and disqualification order made – pecuniary penalties imposed ; COSTS – where defendants sought apportionment of costs – usual order as to costs made
Legislation:	Australian Securities and Investments Commission Act 2001 (Cth) ss 12CB(1), 12DA, 12DB(1)(a), 12DB(1)(d), 12DB(1)(e), 12DB(1)(g), 12DB(1)(i), 12DJ(1), 12GBA, 12GD, 12GLA(2)(b), 19 Competition and Consumer Act 2010 (Cth) Sch 2 s 13 Corporations Act 2001 (Cth) ss 79, 180, 206C, 206E, 912A(1)(a), 912A(1)(c), 963E, 963F, 963J, 963K, 1317E, 1317G(1), 1317G(1E), 1317G(1F), 1324 Corporations Amendment (Life Insurance Remuneration Arrangements) Act 2017 (Cth) Evidence Act 1995 (Cth) s 55 Federal Court of Australia Act 1976 (Cth) s 21, 43
Cases cited:	Alcan (NT) Alumina Pty Ltd v Commissioner of Territory Revenue (Northern Territory) [2009] HCA 41; (2009) 239 CLR 27 Australian Building and Construction Commissioner v Construction, Forestry, Mining and Energy Union [2018] HCA 3; (2018) 262 CLR 157 Australian Building and Construction Commissioner v Pattinson [2022] HCA 13; (2022) 399 ALR 599 Australian Communications and Media Authority v Limni Enterprises Pty Ltd [2022] FCA 795 Australian Competition and Consumer Commission v Australian Safeway Stores Pty Ltd [1997] FCA 450; (1997) 145 ALR 36 Australian Competition and Consumer Commission v Cement Australia Pty Ltd [2017] FCAFC 159; (2017) 258 FCR 312 Australian Competition and Consumer Commission v Dimmeys Stores Pty Ltd [2011] FCA 372 Australian Competition and Consumer Commission v Dimmeys Stores Pty Ltd [1999] FCA 1175 Australian Competition and Consumer Commission v High Adventure Pty Ltd [2005] FCAFC 247; (2006) ATPR 42-091 Australian Competition and Consumer Commission v Hillside (Australia New Media) Pty Ltd t/a Bet365 (No 2) [2016] FCA 698 Australian Competition and Consumer Commission v Leahy Petroleum (No 2) [2005] FCA 254; (2005) 215 ALR 281 Australian Competition and Consumer Commission v Origin Energy Limited [2015] FCA 55 Australian Competition and Consumer Commission v Reckitt Benckiser Pty Ltd [2016] FCAFC 181; (2016) 349 ALR 25 Australian Competition and Consumer Commission v Uber B.V. [2022] FCA 1466 Australian Competition and Consumer Commission v Ultra Tune Australia Proprietary Limited [2019] FCA 12 Australian Competition and Consumer Commission v Unique International College Pty Ltd (Imposition of Penalty) [2019] FCA 1773 Australian Competition and Consumer Commission v Valve Corporation (No 7) [2016] FCA 1553 Australian Competition and Consumer Commission v Yazaki Corporation [2018] FCAFC 73; (2018) 262 FCR 243 Australian Securities and Investments Commission v Australian Property Custodian Holdings Limited (Receivers and Managers appointed) (in liquidation) (Controllers appointed) [2014] FCA 1308; (2014) 322 ALR 45 Australian Securities and Investments Commission v Axis International Management Pty Ltd (No 5) [2011] FCA 60; (2011) 81 ACSR 631 Australian Securities and Investments Commission v Forex Capital Trading Pty Ltd [2021] FCA 570 Australian Securities and Investments Commission v Forge [2007] NSWSC 1489 Australian Securities and Investments Commission v Healey (No 2) [2011] FCA 1003; (2011) 196 FCR 430 Australian Securities and Investments Commission v One Tech Media (No 6) [2020] FCA 842 Australian Securities and Investments Commission v Select AFSL Pty Ltd (No 2) [2022] FCA 786 Australian Securities and Investments Commission v Vines [2006] NSWSC 760; (2006) 58 ACSR 298 Australian Securities and Investments Commission v Vocation Limited (In Liquidation) (No 2) [2019] FCA 1783; (2019) 140 ACSR 382 Australian Securities and Investments Commission v Westpac Banking Corporation (Omnibus) [2022] FCA 515; (2022) 407 ALR 1 Commonwealth of Australia v Director, Fair Work Building Industry Inspectorate [2015] HCA 46; (2015) 258 CLR 482 Construction, Forestry, Maritime, Mining and Energy Union v Fair Work Ombudsman (The Botany Cranes Case) [2023] FCAFC 40 Construction, Forestry, Mining and Energy Union v Cahill [2010] FCAFC 39; (2010) 269 ALR 1 Cruickshank v Australian Securities and Investments Commission [2022] FCAFC 128; (2022) 403 ALR 67 Director of Consumer Affairs Victoria v Wens Bros Trading Pty Ltd [2019] FCA 39 Fair Work Ombudsman v Austrend International Pty Ltd (No 2) [2020] FCA 1193 Fair Work Ombudsman v Construction, Forestry, Maritime, Mining and Energy Union (Kiama Aged Care Centre Appeal) [2023] FCAFC 63 Fair Work Ombudsman v Lam [2021] FCA 205; (2021) 390 ALR 39 HIH Insurance (in prov liq) and HIH Casualty and General Insurance Ltd (in prov liq), Re; Australian Securities and Investments Commission v Adler [2002] NSWSC 483; (2002) 42 ACSR 80 Idylic Solutions Pty Ltd, Re; Australian Securities and Investments Commission v Hobbs [2013] NSWSC 106; (2013) 93 ACSR 421 J McPhee & Son (Australia) Pty Ltd v Australian Competition & Consumer Commission [2000] FCA 365; (2000) 172 ALR 532 Markarian v The Queen [2005] HCA 25; (2005) 228 CLR 357 Mayfair Wealth Partners Pty Ltd v Australian Securities and Investments Commission [2022] FCAFC 170 Medical Benefits Funds of Australia Ltd v Cassidy [2003] FCAFC 289; (2003) 135 FCR 1 Mill v The Queen [1988] HCA 70; (1988) 166 CLR 59 NW Frozen Foods Pty Ltd v Australian Competition and Consumer Commission [1996] FCA 1134; (1996) 71 FCR 285 Project Blue Sky Inc v Australian Broadcasting Authority [1998] HCA 28; (1998) 194 CLR 355 Re Vault Market Pty Ltd [2014] NSWSC 1641 Registrar of Aboriginal and Torres Strait Islander Corporations v Murray [2015] FCA 346 Rich v Australian Securities and Investments Commission [2004] HCA 42; (2004) 220 CLR 129 Royal v El Ali (No 3) [2016] FCA 1573 Rushcutters Bay Smash Repairs Pty Ltd v H McKenna Netmakers Pty Ltd [2003] NSWSC 670 Singtel Optus Pty Ltd v Australian Competition and Consumer Commission [2012] FCAFC 20; (2012) 287 ALR 249 SZTAL v Minister for Immigration and Border Protection [2017] HCA 34; (2017) 262 CLR 362 Thiess Watkins White Construction Ltd (in liq) v Witan Nominees...