Australian Securities & Investments Commission v AMP Financial Planning Pty Ltd (No 2)

• Jurisdiction: Australia Federal only
• Judge: LEE J
• Judgment Date: 05 February 2020
• Neutral Citation: [2020] FCA 69
• Court: Federal Court
• Date: 05 February 2020

FEDERAL COURT OF AUSTRALIA

Australian Securities & Investments Commission v AMP Financial Planning Pty Ltd (No 2) [2020] FCA 69

File number:	NSD 1124 of 2018
Judge:	LEE J
Date of judgment:	5 February 2020
Catchwords:	CORPORATIONS – financial advice – “best interests obligations” – ss 961B, 961G and 961J of the Corporations Act 2001 (Cth) where six representatives of defendant licensee breached ss 961B, 961G and 961J (part of the best interests obligations) by providing advice to 40 clients to generate higher commissions (“churning”) – where some contravening conduct by representatives belatedly admitted by defendant licensee ; CORPORATIONS – financial advice – obligation of financial services licensee under s 961L of Corporations Act 2001 (Cth) to take reasonable steps to ensure that its representatives comply with ss 961B, 961G and 961J – whether defendant licensee committed two, six, 18 or 120 contraventions of s 961L ; PRACTICE AND PROCEDURE – pleadings – procedural fairness – whether it is open to Court to find number of contraventions not contended for until time of hearing ; PRACTICE AND PROCEDURE – declarations – sufficient utility – where declarations of contraventions of s 912A(1) will not form basis for pecuniary penalties – whether there is a public interest in declaring that a person who has engaged in certain conduct has contravened the law – importance of the Court’s reasons in indicating Court’s disapprobation ; PRACTICE AND PROCEDURE – contravening companies selecting large accounting firms to conduct remediation programmes – presentation of fait accompli to Court – dangers of subconscious partisanship and selection bias
Legislation:	Corporations Act 2001 (Cth) ss 912A, 912D, 961B, 961G, 961H, 961J, 961L, 1101B, 1317G, 1317E Corporations Amendment (Further Future of Financial Advice Measures) Act 2012 (Cth) Evidence Act 1995 (Cth) s 140 Federal Court of Australia Act 1976 (Cth) s 21
Cases cited:	Advan Investments Pty Ltd v Dean Gleeson Motor Sales Pty Ltd [2003] VSC 201 Ainsworth v Criminal Justice Commission [1992] HCA 10; (1992) 175 CLR 564 Athens v Randwick City Council [2005] NSWCA 317; (2005) 64 NSWLR 58 Australian Building and Construction Commissioner v Construction, Forestry, Mining and Energy Union [2017] FCAFC 113; (2017) 254 FCR 68 Australian Competition and Consumer Commission v ACM Group Limited (No 3) [2018] FCA 2059 Australian Competition and Consumer Commission v Coles Supermarkets Australia Pty Ltd [2015] FCA 330; (2015) 327 ALR 540 Australian Competition & Consumer Commission v Francis [2004] FCA 487; (2004) 142 FCR 1 Australian Competition and Consumer Commission v Goldy Motors Pty Ltd [2000] FCA 1885 Australian Competition and Consumer Commission v Meriton Property Services Pty Ltd (No 2) [2018] FCA 112 Australian Competition and Consumer Commission v Woolworths Ltd [2016] FCA 44 Australian Securities and Investments Commission v Australian Lending Centre Pty Ltd (No 3) [2012] FCA 43; (2012) 213 FCR 380 Australian Securities and Investments Commission v Cassimatis (No 8) [2016] FCA 1023 Australian Securities and Investments Commission v Dover Financial Advisers Pty Ltd [2019] FCA 1932 Australian Securities and Investments Commission v Financial Circle [2018] FCA 1644; (2018) 131 ACSR 484 Australian Securities and Investments Commission v Golden Financial Group Pty Ltd (No 2) [2017] FCA 1267 Australian Securities and Investments Commission v Hellicar [2012] HCA 17; (2012) 247 CLR 345 Australian Securities and Investments Commission v Maxwell [2006] NSWSC 1052 Australian Securities and Investments Commission v McDougall [2006] FCA 427; (2006) 229 ALR 158 Australian Securities and Investments Commission v NSG Services Pty Ltd [2017] FCA 345; (2017) 122 ACSR 47 Australian Securities and Investments Commission v Wealth & Risk Management Pty Ltd (No 2) [2018] FCA 59; (2018) 124 ACSR 351 Australian Securities and Investments Commission v Westpac Banking Corporation (No 3) [2018] FCA 1701; (2018) 131 ACSR 585 Australian Securities and Investments Commission v Westpac Banking Corporation [2019] FCA 2147 Australian Securities and Investments Commission v Westpac Securities Administration Limited [2019] FCAFC 187 Banque Commerciale SA, En Liquidation v Akhil Holdings Ltd [1990] HCA 11; (1990) 169 CLR 279 Carr v Western Australia [2007] HCA 47; (2007) 232 CLR 138 Commonwealth v Director, Fair Work Building Industry Inspectorate [2015] HCA 46; (2015) 258 CLR 482 Construction, Forestry, Mining and Energy Union v Cahill [2010] FCAFC 39 Construction, Forestry, Mining and Energy Union v De Martin & Gasparini Pty Limited (No 3) [2018] FCA 1395 CSR Ltd v Eddy [2005] HCA 64; (2005) 226 CLR 1 Dare v Pulham [1982] HCA 70; (1982) 148 CLR 658 Director of Public Prosecutions v Merriman [1973] AC 584 Gjergja & Atco Controls Pty Ltd v Cooper [1987] VR 167 Ibeneweka v Egbuna [1964] 1 WLR 219 Invensys Australia Superannuation Fund Pty Ltd v Austrac Investments Limited [2006] VSC 112; (2006) 15 VR 87 Markarian v The Queen [2005] HCA 25; (2005) 228 CLR 357 NW Frozen Foods Pty Ltd v Australian Competition and Consumer Commission [1996] FCA 1134; (1996) 71 FCR 285 Panganiban and Australian Securities and Investments Commission [2017] AATA 1026 Precision Plastics Pty Limited v Demir [1975] HCA 27; (1975) 132 CLR 362 R v Industrial Appeals Court; Ex parte Barelli’s Bakeries Pty Ltd [1965] VR 615 Vines v Australian Securities and Investments Commission [2007] NSWCA 75; (2007) 73 NSWLR 45 ; Revised explanatory memorandum to the Corporations Amendment (Further Future of Financial Advice Measures) Bill 2012 (Cth) Victorian Law Reform Commission, Civil Justice Review: Report, 2008
Date of hearing:	19, 20 June, 26 July, 1 October 2019
Registry:	New South Wales
Division:	General Division
National Practice Area:	Commercial and Corporations
Sub-area:	Regulator and Consumer Protection
Category:	Catchwords
Number of paragraphs:	263
Counsel for the Plaintiff:	Dr S Pritchard SC with Mr J Hewitt & Ms S Patterson
Solicitor for the Plaintiff:	Australian Securities & Investments Commission
Counsel for the Defendant:	Ms E A Collins SC with Mr I J M Ahmed & Ms K N Pham
Solicitor for the Defendant	Clayton Utz

ORDERS

		NSD 1124 of 2018
BETWEEN:	AUSTRALIAN SECURITIES & INVESTMENTS COMMISSION Plaintiff
AND:	AMP FINANCIAL PLANNING PTY LTD Defendant

JUDGE:	LEE J
DATE OF ORDER:	5 FEBRUARY 2020

THE...