Akron Securities Ltd v Iliffe (No 3)

Akron Securities Ltd (the appellant) appealed to the New South Wales Court of Appeal against the decision of the primary judge in proceedings brought by the respondents, Iliffe and others. The dispute concerned the appellant's liability for alleged breaches of fiduciary duty and misleading and deceptive conduct in relation to investment advice provided to the respondents.

The Court of Appeal was required to determine whether the primary judge had erred in finding the appellant liable for breaches of fiduciary duty and misleading and deceptive conduct. Specifically, the court considered whether the appellant had acted in its own interests to the detriment of the respondents and whether its conduct in recommending certain investments constituted misleading or deceptive conduct under the relevant legislation.

The Court of Appeal upheld the primary judge's findings. It reasoned that the appellant, as a financial advisor, owed fiduciary duties to its clients, which included a duty to act in their best interests and avoid conflicts of interest. The court found that the appellant had breached these duties by recommending investments that were not in the best interests of the respondents, but rather served the appellant's own commercial interests. Furthermore, the court held that the appellant's conduct in presenting these investments to the respondents was misleading and deceptive, as it failed to disclose material information and misrepresented the nature and risks of the investments. The principles applied included those relating to fiduciary obligations in financial advisory relationships and the interpretation of provisions prohibiting misleading and deceptive conduct in trade or commerce.

The appeal was dismissed, and the orders of the primary judge were affirmed.