Australian Securities and Investments Commission v RI Advice Group Pty Ltd (No 2) [2021] FCA 877

Australian Securities and Investments Commission v RI Advice Group Pty Ltd (No 2) [2021] FCA 877

RI Advice Group Pty Ltd contravened s 961L of the Corporations Act by failing to take reasonable steps during five periods between 2013 and 2016 to ensure that John Doyle complied with Best Interests Obligations, notably by having compliance policies that could be circumvented, not investigating known risks that Doyle was breaching policies, and not acting promptly on sustained non-compliance. These failures also meant RI did not do all things necessary to ensure financial services were provided efficiently, honestly, and fairly (s 912A(1)(a)), nor did it ensure compliance with financial services laws (s 912A(1)(c), (ca)).

Parties
Plaintiff: Australian Securities and Investments Commission; First Defendant: RI Advice Group Pty Ltd; Second Defendant: John Doyle
Jurisdiction
Australia
Judgment Date
02 August 2021
Procedural Posture
Civil Regulatory/enforcement / Judgment on Liability (penalty Hearing and Other Relief to Be Scheduled)
Outcome
RI Advice Group Pty Ltd found to have contravened ss 961L and 912A(1)(a),(c),(ca) of the Corporations Act 2001 (Cth). Final orders and pecuniary penalties to be determined at later hearing.
Legal Topics
AFSL Holder Obligations, Best Interests Duty, Compliance and Supervision, Licensee Liability, Financial Adviser Regulation, Remediation of Clients, Product Approval and Compliance
Corporations Law Financial Services Law AFSL Holder Obligations Best Interests Duty Compliance and Supervision Licensee Liability Financial Adviser Regulation Remediation of Clients +1 more

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Parties

Australian Securities and Investments Commission

Plaintiff

RI Advice Group Pty Ltd

First Defendant

John Doyle

Second Defendant

Procedural Posture

Civil Regulatory/enforcement / Judgment on Liability (penalty Hearing and Other Relief to Be Scheduled)

Legal Issues

  1. 1 Whether RI Advice Group Pty Ltd contravened s 961L of the Corporations Act 2001 (Cth) by failing to take reasonable steps to ensure that its representative, John Doyle, complied with the Best Interests Obligations
  2. 2 Whether RI contravened s 912A(1)(a), (c), and (ca) by failing to ensure its financial services were provided efficiently, honestly and fairly and that its representatives complied with financial services laws

Ratio Decidendi

RI Advice Group Pty Ltd contravened s 961L of the Corporations Act by failing to take reasonable steps during five periods between 2013 and 2016 to ensure that John Doyle complied with Best Interests Obligations, notably by having compliance policies that could be circumvented, not investigating known risks that Doyle was breaching policies, and not acting promptly on sustained non-compliance. These failures also meant RI did not do all things necessary to ensure financial services were provided efficiently, honestly, and fairly (s 912A(1)(a)), nor did it ensure compliance with financial services laws (s 912A(1)(c), (ca)).

Court Disposition

RI Advice Group Pty Ltd found to have contravened ss 961L and 912A(1)(a),(c),(ca) of the Corporations Act 2001 (Cth). Final orders and pecuniary penalties to be determined at later hearing.

Orders

  • The proceeding be listed for a case management hearing, in relation to the further conduct of the proceeding, on a date to be fixed.