Australian Securities and Investments Commission v Firstmac Limited [2024] FCA 737

FEDERAL COURT OF AUSTRALIA

Australian Securities and Investments Commission v Firstmac Limited [2024] FCA 737 File number(s): QUD 467 of 2022

Judgment of: DOWNES J

Date of judgment: 10 July 2024

Catchwords: CORPORATIONS – alleged contraventions of s994E(3) of the Corporations Act 2001 (Cth) concerning design and distribution obligations relating to financial products for retail clients – meaning of "reasonable steps" – meaning of "would have resulted in, or would have been reasonably likely to have resulted in…" – whether reasonable steps must be antecedent to retail product distribution conduct – whether distributor of financial product failed to take reasonable steps within meaning of ss994E(3) and 994E(5) of the Corporations Act 2001 (Cth)

Words & phrases: "reasonably likely"

Legislation: Australian Securities and Investments Commission Act 2001 (Cth) s 33 Corporations Act 2001 (Cth) ss 761A, 761G, 912C, 961L, 963F, 994A, 994B, 994E Evidence Act 1995 (Cth) s 140(2) Treasury Laws Amendment (Design and Distribution Obligations and Product Intervention Powers) Act 2019 (Cth) Sch 1 Corporations Regulations 2001 (Cth) reg 7.1.19(2)

Cases cited: Australian Competition and Consumer Commission v Metcash Trading Ltd (2011) 198 FCR 297; [2011] FCAFC 151 Australian Gas Light Company v Australian Competition and Consumer Commission (No 3) (2003) 137 FCR 317; [2003] FCA 1525 Australian Securities and Investments Commission v Daly (Liability Hearing) [2023] FCA 290 Australian Securities and Investments Commission v Diversa Trustees Limited [2023] FCA 1267 Australian Securities and Investments Commission v Healey (2011) 196 FCR 291; [2011] FCA 717 Australian Securities and Investments Commission v R M Capital Pty Ltd [2024] FCA 151 Australian Securities and Investments Commission v RI Advice Group Pty Ltd (No 2) (2021) 156 ACSR 371; [2021] FCA 877 Briginshaw v Briginshaw (1938) 60 CLR 336 Construction, Forestry, Maritime, Mining and Energy Union v Mechanical Maintenance Solutions Pty Ltd (2022) 289 FCR 508; [2022] FCAFC 15 Department of Agriculture & Rural Affairs v Binnie [1989] VR 836 Re Fenwick (2009) 76 NSWLR 22; [2009] NSWSC 530 Re The Will of Bridget [2018] NSWSC 1509 Seven Network Ltd v News Ltd (2009) 182 FCR 160; [2009] FCAFC 166 Sheen v Fields Pty Ltd (1984) 58 ALJR 93 Sportsbet Pty Ltd v State of New South Wales (No 9) [2010] FCA 31 Tillmanns Butcheries Pty Ltd v Australasian Meat Industry Employees' Union (1979) 27 ALR 367