Australian Securities and Investments Commission v Mayfair Wealth Partners Pty Ltd (No 2) [2021] FCA 247

FEDERAL COURT OF AUSTRALIA

Australian Securities and Investments Commission v Mayfair Wealth Partners Pty Ltd (No 2) [2021] FCA 247 File number(s): VID 228 of 2020

Judgment of: ANDERSON J

Date of judgment: 23 March 2021

Catchwords: CORPORATIONS – representations made to investors in promissory notes – representations made in promotional and marketing materials – representation that notes were comparable to, and of similar risk profile to, bank term deposits – representation that principal would be repaid in full – representation that notes were specifically designed for investors seeking certainty and confidence in investments and notes therefore carried no risk of default – representation that the "M Core Fixed Income Notes" were fully secured financial products – assessment of the terms of the promissory notes – assessment of expert evidence as to security position – assessment of report of provisional liquidators of the third defendant CORPORATIONS – false, misleading or deceptive conduct – representations contravened s 1041H(1) of the Corporations Act 2001 (Cth) and ss 12DA(1), 12DB(1)(a) and 12DB(1)(e) of the Australian Securities and Investments Commission Act 2001 (Cth) – relevant principles concerning false, misleading or deceptive conduct – principles relevant to declarations – declarations made that conduct was in contravention of s 1041H(1) of the Corporations Act 2001 (Cth) and ss 12DA(1), 12DB(1)(a) and 12DB(1)(e) of the Australian Securities and Investments Commission Act 2001 (Cth)

Legislation: Australian Securities and Investments Commission Act 2001 (Cth), ss 12BB(1), 12DA(1), 12DB(1)(a), 12DB(1)(e), 12BAB(1)(b), 12BAB(7)(b), 12GBA, 12GD, 12GLA(2)(c), 12GLA(2)(d) and 12GLB Corporations Act 2001 (Cth), ss 766C(1)(b), 769C, 1101B(1)(a), 1041H(1), 1041H(2)(a) and 1324 Federal Court of Australia Act 1976 (Cth), s 21