Australian Securities and Investments Commission v Insurance Australia Limited, in the matter of Insurance Australia Limited [2023] FCA 724

Federal Court of Australia

Australian Securities and Investments Commission v Insurance Australia Limited, in the matter of Insurance Australia Limited [2023] FCA 724 File number(s): NSD 1070 of 2021

Judgment of: ABRAHAM J

Date of judgment: 30 June 2023

Catchwords: INSURANCE – proceeding for civil contraventions of Australian Securities and Investments Commission Act 2001 (Cth) and Corporations Act 2001 (Cth) – where conduct serious – where failures involved misleading or deceptive conduct or conduct that was likely to mislead or deceive and making false and/or misleading representations – where failures breached obligation to do all things necessary to ensure financial services were provided efficiently, honestly and fairly – where mitigating factors present – where parties agree on proposed declarations and pecuniary penalty – whether appropriate for Court to make declarations of contraventions and to impose civil penalties sought – method and recipients of adverse publicity notice. HELD – Court satisfied that declarations and pecuniary penalty sought appropriate having regard to all relevant matters.

Legislation: Australian Securities and Investments Commission Act 2001 (Cth) ss 12BAA, 12BB, 12DA(1), 12DB(1)(g), 12DB(1)(i), 12GBA(1)-(3), 12GBB(5), s 12GLB(1)-(2) Corporations Act 2001 (Cth) ss 1101B, 912A(1)(a), 912A(1)(c), 912B Crimes Act 1914 (Cth) s 4AA Federal Court of Australia Act 1976 (Cth) ss 21, 43

Cases cited: Australian Building and Construction Commissioner v Pattinson [2022] HCA 13; (2022) 399 ALR 599 Australian Competition and Consumer Commission v Australian Safeway Stores Pty Ltd [1997] FCA 450; (1997) 145 ALR 36 Australian Competition and Consumer Commission v Hillside (Australia New Media) Pty Ltd (t/as Bet365) (No 2) [2016] FCA 698 Australian Competition and Consumer Commission v MSY Technology Pty Ltd [2012] FCAFC 56; (2012) 201 FCR 378 Australian Competition and Consumer Commission v Reckitt Benckiser (Australia) Pty Ltd [2016] FCAFC 181; (2016) 340 ALR 25 Australian Competition and Consumer Commission v Yazaki Corporation [2018] FCAFC 73; (2018) 262 FCR 243 Australian Securities and Investments Commission v Australia and New Zealand Banking Group Ltd [2022] FCA 1251; (2022) 164 ACSR 428 Australian Securities and Investments Commission v Colonial First State Investments Ltd [2021] FCA 1268 Australian Securities and Investments Commission v Commonwealth Bank of Australia (No 2) [2021] FCA 966 Australian Securities and Investments Commission v Commonwealth Securities Limited [2022] FCA 1253 Australian Securities and Investments Commission v MLC Nominees; [2020] FCA 1306; (2020) 147 ACSR 266 Australian Securities and Investments Commission v Monarch FX Group Pty Ltd, in the matter of Monarch FX Group Pty Ltd [2014] FCA 1387; (2014) 103 ACSR 453 Australian Securities and Investments Commission v Stone Assets Management Pty Ltd [2012] FCA 630; (2012) 205 FCR 120 Australian Securities and Investments Commission v Westpac Banking Corporation [2019] FCA 2147 ASIC v Pegasus Leveraged Options Group Pty Ltd [2002] NSWSC 310; (2002) 41 ACSR 561 Commonwealth v Director, Fair Work Building Industry Inspectorate [2015] HCA 46; (2015) 258 CLR 482 Construction, Forestry, Mining and Energy Union v Cahill [2010] FCAFC 39; (2010) 269 ALR 1 Forster v Jododex Australia Pty Ltd [1972] HCA 61; (1972) 127 CLR 421 Markarian v The Queen [2005] HCA 25; (2005) 228 CLR 357 Mill v The Queen [1988] HCA 70; (1988) 166 CLR 59 Minister for Industry, Tourism and Resources v Mobil Oil Australia Pty Ltd [2004] FCAFC 72; (2004) ATPR 41-993 NW Frozen Foods Pty Ltd v Australian Competition Commission [1996] FCA 1134; (1996) 71 FCR 285 Seven Network Ltd v News Ltd [2009] FCAFC 166; (2009) 182 FCR 160 Singtel Optus Pty Ltd v Australian Competition and Consumer Commission [2012] FCAFC 20; (2012) 287 ALR 249 Volkswagen Aktiengesellschaft v Australian Competition and Consumer Commission [2021] FCAFC 49; (2021) 284 FCR 24