Capricorn Financial Planners Pty Ltd v Australian Securities & Investments Commission [1999] FCA 558

FEDERAL COURT OF AUSTRALIA

Capricorn Financial Planners Pty Ltd v Australian Securities & Investments Commission [1999] FCA 558 CORPORATIONS – appeal from AAT re decision to apply, to compensate for loss to a client, a security lodged under s 786 by a securities dealer – discussion of dealers licence as covering business of investment adviser – fraud of authorized representative – whether security should be applied in compensation on the basis that an agent of the licensee failed to carry on business under the licence adequately and properly – whether transaction involving the agent's own companies was outside the principal's business – whether the agent acted "in connection with [the] securities business" when advising a change of investments from authorized investments to investments in his own companies -–whether he was acting as agent of the dealer, though for his own fraudulent purposes – whether the loss was caused by a failure of supervision. Corporations Law, ss 88, 94(2), 94(3) & (4), 780, 781, 782, 786(2)(d), 786(9), 806 Corporations Regulations, regs 7.3.02, 7.3.04(1)

Capricorn Financial Planners Pty Ltd v Australian Securities commission (1998) 16 ACLC 1005 cited Daly v The Sydney Stock Exchange Limited (1986) 160 CLR 371 applied Lloyd v Grace, Smith & Co [1912] AC 716 applied Polkinghorne v Holland (1934) 51 CLR 143 applied Mann v Hulme (1961) 106 CLR 136 cited Morris v C.W. Martin & Sons Ltd [1966] 1 QB 716 applied Freeman & Lockyer v Buckhurst Park Properties (Mangal) Ltd [1964] 2 QB 480 cited Clayton Robard Management Ltd v Siu (1988) 6 ACLC 57 cited

CAPRICORN FINANCIAL PLANNERS PTY LIMITED v AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION NG 405 of 1998 Burchett J 5 May 1999 Sydney

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY NG 405 of 1998