Australian Securities and Investments Commission v MLC Limited [2023] FCA 539

FEDERAL COURT OF AUSTRALIA

Australian Securities and Investments Commission v MLC Limited [2023] FCA 539 File number: VID 681 of 2021

Judgment of: MOSHINSKY J

Date of judgment: 18 May 2023

Catchwords: CORPORATIONS – financial services – false or misleading representations in connection with the supply of financial services – where the respondent failed to provide a rehabilitation bonus benefit to 119 customers who were entitled to that benefit under their insurance policies – where the respondent impliedly represented to those customers that they were not entitled to that benefit – where the respondent admitted that the representations were false or misleading and that it contravened the relevant provision – pecuniary penalty – where the parties jointly proposed declarations of contravention and a pecuniary penalty of $10 million – whether proposed penalty within the appropriate range – held: declarations made and penalty of $10 million imposed INSURANCE – duty of utmost good faith – where the respondent failed to provide a rehabilitation bonus benefit to customers who were entitled to that benefit under their insurance policies – where the respondent impliedly represented that the customers were not entitled to that benefit – where the respondent admitted that it thereby breached its duty of utmost good faith – where the parties jointly proposed declaration of contravention – held: declaration made CORPORATIONS – financial services – obligations of financial services licensee – where the respondent held a financial services licence – where the respondent admitted that it contravened its obligation to do all things necessary to ensure that the financial services covered by the licence were provided efficiently, honestly and fairly – where the parties jointly proposed declarations of contravention – held: declarations made