Australian Securities and Investments Commission v MobiSuper Pty Limited [2022] FCA 990

Australian Securities and Investments Commission v MobiSuper Pty Limited [2022] FCA 990

MobiSuper Pty Limited provided personal financial product advice to retail clients without required Statements of Advice, failed to make adequate inquiries or warnings, and made misleading representations about fee savings without reasonable grounds, contrary to the Corporations Act and ASIC Act. ZIB Financial, as responsible licensee, failed to oversee and ensure compliance, breaching key statutory duties. Jointly proposed penalties were accepted as appropriate, despite being at the lower end, given the admissions and context.

Parties
Plaintiff: Australian Securities and Investments Commission; First Defendant: MobiSuper Pty Limited (ACN 613 581 981); Second Defendant: ZIB Financial Pty Limited (ACN 609 197 971); Third Defendant: Tidswell Financial Services Limited (ACN 010 810 607); Fourth Defendant: Andrew Richard Grover
Jurisdiction
Australia
Judgment Date
26 August 2022
Procedural Posture
Civil / Judgment and Orders
Outcome
Declarations of contravention made; pecuniary penalties imposed; orders by consent; costs awarded as fixed sum; other parts of originating application dismissed as against named parties.
Legal Topics
Superannuation, Personal Financial Advice, False or Misleading Representations, Best Interests Duty, Statements of Advice, Pecuniary Penalties, Regulatory Compliance
Consumer Law Corporations Law Financial Services Regulation Superannuation Personal Financial Advice False or Misleading Representations Best Interests Duty Statements of Advice +2 more

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 5 Authorities cited 25 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

Australian Securities and Investments Commission

Plaintiff

MobiSuper Pty Limited (ACN 613 581 981)

First Defendant

ZIB Financial Pty Limited (ACN 609 197 971)

Second Defendant

Tidswell Financial Services Limited (ACN 010 810 607)

Third Defendant

Andrew Richard Grover

Fourth Defendant

Procedural Posture

Civil / Judgment and Orders

Legal Issues

  1. 1 Whether MobiSuper Pty Limited provided personal financial product advice and contravened s 766B(3), s 946A, s 947D Corporations Act 2001 (Cth) and s 12DB(1)(g) ASIC Act 2001 (Cth).
  2. 2 Whether ZIB Financial Pty Limited, as responsible licensee, contravened s 961K(2), s 961L, and s 912A(1)(a) Corporations Act 2001 (Cth) by failing to oversee and ensure compliance by its representatives.
  3. 3 Whether the Fee Saving Representations were misleading and made without reasonable grounds.

Ratio Decidendi

MobiSuper Pty Limited provided personal financial product advice to retail clients without required Statements of Advice, failed to make adequate inquiries or warnings, and made misleading representations about fee savings without reasonable grounds, contrary to the Corporations Act and ASIC Act. ZIB Financial, as responsible licensee, failed to oversee and ensure compliance, breaching key statutory duties. Jointly proposed penalties were accepted as appropriate, despite being at the lower end, given the admissions and context.

Court Disposition

Declarations of contravention made; pecuniary penalties imposed; orders by consent; costs awarded as fixed sum; other parts of originating application dismissed as against named parties.

Orders

  • First Defendant (MobiSuper Pty Limited) to pay pecuniary penalties of $125,000 to the Commonwealth of Australia for contraventions of s 12DB(1)(g) of the ASIC Act.
  • Second Defendant (ZIB Financial Pty Limited) to pay pecuniary penalties of $125,000 to the Commonwealth of Australia for contraventions of s 961K and s 961L of the Corporations Act.