Australian Securities and Investments Commission v M101 Nominees Pty Ltd (No 3) [2021] FCA 354

FEDERAL COURT OF AUSTRALIA

Australian Securities and Investments Commission v M101 Nominees Pty Ltd (No 3) [2021] FCA 354 File number(s): VID 524 of 2020

Judgment of: ANDERSON J

Date of judgment: 19 April 2021

Catchwords: CORPORATIONS – financial products offered by first defendant and entities associated with second defendant – whether certain entities provided financial services or financial products without a financial services licence – whether financial products offered by entities associated with second defendant had similar features and are "inherently problematic" or "fatally flawed" – whether new investors' funds were used to repay redemptions promised to old investors – whether offering of certain financial products entailed misleading and deceptive conduct – whether certain entities provided financial services to a "retail client" without complying with requirements in Chapter 7 of the Corporations Act 2001 (Cth) – whether certain financial products launched by second defendant to circumvent orders of this Court in proceeding VID 228 of 2020 CORPORATIONS – whether second defendant was "directing mind and will" of the relevant corporate entities – whether second defendant involved in contraventions under s 79 of the Corporations Act 2001 (Cth) and s 12GBCL of the Australian Securities and Investments Commission Act 2001 (Cth) CORPORATIONS – final relief – injunctions – whether jurisdiction enlivened under ss 1101B and 1324 of the Corporations Act 2001 (Cth) – jurisdiction enlivened CORPORATIONS – final relief – whether orders should be made permanently restraining second defendant from engaging in certain activities in relation to financial products Held: orders made restraining second defendant from engaging in certain activities for a period of 20 years