Australian Securities and Investments Commission v Commonwealth Securities Limited [2022] FCA 1253

Australian Securities and Investments Commission v Commonwealth Securities Limited [2022] FCA 1253

The Court found that CommSec and AUSIEX systematically breached statutory obligations and market rules through failures across their systems, processes, and controls. Declarations of contravention, substantial pecuniary penalties, and court-ordered compliance programs were appropriate remedies, taking into account the seriousness of the breaches and weighty mitigating factors including cooperation, remediation, lack of deliberate wrongdoing, and consent to the orders.

Jurisdiction
Australia
Judgment Date
25 October 2022
Procedural Posture
Civil Penalty Proceeding / Final Judgment With Orders and Reasons
Outcome
Declarations of contravention made. Pecuniary penalties imposed. Orders for compliance programs made. Costs awarded to plaintiff.
Legal Topics
['market Integrity Rules' 'financial Service Licensee Obligations' 'civil Penalties' 'false or Misleading Representations' 'compliance Programs']
['banking and Financial Services Law' 'corporations Law' 'regulatory Law'] ['market Integrity Rules' 'financial Service Licensee Obligations' 'civil Penalties' 'false or Misleading Representations' 'compliance Programs']

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Civil Penalty Proceeding / Final Judgment With Orders and Reasons

Legal Issues

  1. 1 ['Whether Commonwealth Securities Limited and Australian Investment Exchange Limited contravened s 912A(1)(a) and s 798H of the Corporations Act and s 12DB of the ASIC Act' 'Whether declarations, pecuniary penalties, and compliance program orders should be made']

Ratio Decidendi

The Court found that CommSec and AUSIEX systematically breached statutory obligations and market rules through failures across their systems, processes, and controls. Declarations of contravention, substantial pecuniary penalties, and court-ordered compliance programs were appropriate remedies, taking into account the seriousness of the breaches and weighty mitigating factors including cooperation, remediation, lack of deliberate wrongdoing, and consent to the orders.

Court Disposition

Declarations of contravention made. Pecuniary penalties imposed. Orders for compliance programs made. Costs awarded to plaintiff.

Orders

  • ['CommSec to pay $20 million pecuniary penalty to Commonwealth.' 'AUSIEX to pay $7.12 million pecuniary penalty to Commonwealth.' 'CommSec to implement court-ordered compliance plan (Schedule 1).' 'AUSIEX to implement court-ordered compliance plan (Schedule 2).' "CommSec and AUSIEX to pay ASIC's costs, to be agreed...