Australian Securities and Investments Commission v Lanterne Fund Services Pty Limited [2024] FCA 353

Federal Court of Australia

Australian Securities and Investments Commission v Lanterne Fund Services Pty Limited [2024] FCA 353 File number(s): VID 379 of 2022

Judgment of: MCEVOY J

Date of judgment: 10 April 2024

Catchwords: CORPORATIONS – where defendant holds an Australian financial services licence – where defendant operates a business of authorising companies and individuals to operate as corporate authorised representatives and authorised representatives under its Australian financial services licence – defendant contravened ss 912A(1)(a), (ca), (d), (e), (f), (h) and s 912A(5A) of the Corporations Act 2001 (Cth) – where defendant failed to have in place adequate systems, processes and controls – where defendant admitted contravening the relevant legislative provisions and parties jointly proposed declarations of contravention – where plaintiff sought imposition of penalty of $1.5 million and defendant proposed penalty of $150,000 – consideration of whether the proposed declarations appropriate – penalty of $1.25 million found to be appropriate – consideration of compliance orders – compliance orders made as agreed by parties – costs reserved

Legislation: Australian Securities and Investments Commission Act 2001 (Cth) Div 2 of Part 2 Corporations Act 2001 (Cth) ss 760A, 761A, 911A, 912A(1), 912A(5A), 1101B(1), 1317E, 1317G(6) Federal Court of Australia Act 1976 (Cth) s 21

Cases cited: Australian Securities and Investments Commission v Australia and New Zealand Banking Group Limited [2023] FCA 1150 Australian Building and Construction Commission v Construction, Forestry, Mining and Energy Union (2018) 262 CLR 157; [2018] HCA 3 Australian Building and Construction Commissioner v Construction, Forestry, Mining and Energy Union (2017) 254 FCR 68; [2017] FCAFC 113 Australian Building and Construction Commissioner v Pattinson (2022) 274 CLR 450; [2022] HCA 13 Australian Competition and Consumer Commission v Coles Supermarkets Australia Pty Ltd [2014] FCA 1405 Australian Competition and Consumer Commission v Construction, Forestry, Mining and Energy Union [2007] ATPR 42-140; [2006] FCA 1730 Australian Competition and Consumer Commission v High Adventure Pty Limited [2005] FCAFC 247 Australian Competition and Consumer Commission v Murray Goulburn Co-Operative Co Ltd [2018] FCA 1964 Australian Competition and Consumer Commission v Reckitt Benckiser (Australia) Pty Ltd (2016) 340 ALR 25; [2016] FCAFC 181 Australian Competition and Consumer Commission v Rural Press Ltd (2001) ATPR 41-833; [2001] FCA 1065 Australian Competition and Consumer Commission v Telstra Corporation Limited (2010) 188 FCR 238 Australian Competition and Consumer Commission v TPG Internet Pty Ltd (2013) 250 CLR 640; [2013] HCA 54 Australian Competition and Consumer Commission v Yazaki Corporation (2018) 262 FCR 243; [2018] FCAFC 73 Australian Competition and Consumer Commission v MSY Technology Pty Ltd (2012) 201 FCR 378; [2012] FCAFC 56 Australian Securities and Investments Commission v AGM Markets Pty Ltd (in liquidation) (No 3) [2020] FCA 208; (2020) 275 FCR 57 Australian Securities and Investments Commission v AGM Markets Pty Ltd (in liq) (No 4) (2020) 148 ACSR 511; [2020] FCA 1499 Australian Securities and Investments Commission v AMP Financial Planning Proprietary Limited (2022) 164 ACSR 64; [2022] FCA 1115 Australian Securities and Investments Commission v Austal Ltd [2022] FCA 1231 Australian Securities and Investments Commission v Australia and New Zealand Banking Group Limited (No 3) [2020] FCA 1421 Australian Securities and Investments Commission v Australia and New Zealand Banking Group Limited [2023] FCA 256 Australian Securities and Investments Commission v Australia and New Zealand Banking Group Limited [2018] FCA 155 Australian Securities and Investments Commission v Camelot Derivatives Pty Ltd (in liq) [2012] FCA 414; (2012) 88 ACSR 206 Australian Securities and Investments Commission v Cassimatis (No 8) [2016] FCA 1023; (2016) 336 ALR 209 Australian Securities and Investments Commission v Commonwealth Bank of Australia [2018] FCA 941; (2018) 128 ACSR 289 Australian Securities and Investments Commission v Commonwealth Bank of Australia [2020] FCA 790 Australian Securities and Investments Commission v Financial Circle Pty Ltd [2018] FCA 1644; (2018) 131 ACSR 484 Australian Securities and Investments Commission v GE Capital Finance Australia [2014] FCA 701 Australian Securities and Investments Commission v GetSwift Limited (Penalty Hearing) [2023] FCA 100 Australian Securities and Investments Commission v Mercer Financial Advice (Australia) Pty Ltd [2023] FCA 1453 Australian Securities and Investments Commission v MLC Limited [2023] FCA 539 Australian Securities and Investments Commission v MLC Nominees Pty Ltd [2020] FCA 1306; (2020) 147 ACSR 266 Australian Securities and Investments Commission v MobiSuper Pty Ltd [2021] FCA 855 Australian Securities and Investments Commission v MobiSuper Pty Limited [2022] FCA 990 Australian Securities and Investments Commission v National Australia Bank Limited [2017] FCA 1338; (2017) 123 ACSR 341 Australian Securities and Investments Commission v National Australia Bank Limited [2021] FCA 1013 Australian Securities and Investments Commission v NSG Services Pty Ltd [2017] FCA 345; (2017) 122 ACSR 47 Australian Securities and Investments Commission v Park Trent Properties Group Pty Ltd (No 3) [2015] NSWSC 1527 Australian Securities and Investments Commission v RI Advice Group Pty Ltd (2022) 160 ACSR 204; [2022] FCA 496 Australian Securities and Investments Commission v RI Advice Group Pty Ltd (No 2) [2021] FCA 877; (2021) 156 ACSR 371 Australian Securities and Investments Commission v Wealth & Risk Management Pty Ltd (No 2) [2018] FCA 59; (2018) 124 ACSR 351 Australian Securities and Investments Commission v Westpac Banking Corporation (No 2) [2018] FCA 751; (2018) 266 FCR 147 Australian Securities and Investments Commission v Westpac Banking Corporation (Omnibus) [2022] FCA 515; (2022) 407 ALR 1 Australian Securities and Investments Commission v Westpac Banking Corporation [2019] FCA 2147 Australian Securities and Investments Commission v Westpac Banking Corporation (No 3) (2018) 131 ACSR 585; [2018] FCA 1701 Australian Securities and Investments Commission v Westpac Banking Corporation (The Consumer Credit Insurance Case) [2022] FCA 359 Australian Securities and Investments Commission v Westpac Securities Administration Limited, in the matter of Westpac Securities Administration Limited [2018] FCA 2078; (2019) 133 ACSR 1 Australian Securities and Investments Commission v Westpac Securities Administration Limited [2019] FCAFC 187; (2019) 272 FCR 170 Australian Securities and Investments Commission v Westpac Securities Administration Limited (2021) 156 ACSR 614; [2021] FCA 1008 Australian Securities and Investments Commission v Allianz Australia Insurance Limited [2021] FCA 1062 Australian Securities and Investments Commission v Axis International Management Pty Ltd (2009) 178 FCR 485; [2009] FCA 852 Australian Securities Commission v Donovan (1998) 28 ACSR 583 Australian Softwood Forests Pty Ltd v Attorney-General (NSW); Ex relatione Corporate Affairs Commission (1981) 148 CLR 121 Avoca Consultants Pty Ltd v Millennium3 Financial Services Pty Ltd [2009] FCA 883; (2009) 179 FCR 46 Commonwealth of Australia v Director, Fair Work Building Industry Inspectorate (2015) 258 CLR 482; [2015] HCA 46 Forster v Jododex Australia Pty Ltd (1972) 127 CLR 421 Markarian v The Queen (2005) 228 CLR 357; [2005] HCA 25 NW Frozen Foods Pty Ltd v Australian Competition and Consumer Commission (1996) 71 FCR 285; [1996] FCA 1134 Re HIH Insurance Ltd (in prov liq) and HIH Casualty and General Insurance Ltd (in prov liq); Australian Securities and Investments Commission v Adler (2002) 42 ACSR 80; [2002] NSWSC 483 Registrar of Aboriginal and Torres Strait Islander Corporations v Matcham (No 2) (2014) 97 ACSR 412; [2014] FCA 27 Royer v The State of Western Australia (2009) 197 A Crim R 319; [2009] WASCA 139 Rural Press Limited v ACCC (2003) 216 CLR 53; [2003] HCA 75 Singtel Optus Pty Ltd v Australian Competition and Consumer Commission (2012) 287 ALR 249; [2012] FCAFC 20 Story v National Companies and Securities Commission (1988) 13 NSWLR 661 Stuart v Construction, Forestry, Mining and Energy Union (2010) 185 FCR 308; [2010] FCAFC 65 Tobacco Institute of Australia Ltd v Australian Federation of Consumer Organisations Inc (No 2) (1993) 41 FCR 89; (1993) 113 ALR 257; (1993) ATPR 41-222 Trade Practices Commission v CSR Ltd (1991) ATPR 41-076; [1990] FCA 762 viagogo AG v Australian Competition and Consumer Commission [2022] FCAFC 87 Wellington Capital Limited v Australian Securities and Investments Commission (2014) 254 CLR 288; [2014] HCA 43