Australian Competition and Consumer Commission v Master Wealth Control Pty Ltd

The case of Australian Competition and Consumer Commission v Master Wealth Control Pty Ltd involved the Australian Competition and Consumer Commission (ACCC) suing Master Wealth Control Pty Ltd and others for misleading and deceptive conduct. The primary contention was that the defendants had made false representations about homeowners' equity, the effectiveness of a so-called “Vestey Trust” structure in protecting assets, and the legal standing of this structure as upheld by the Full Court. The ACCC sought declaratory relief and other remedies against the defendants for contravening the Australian Consumer Law (ACL).

The legal issues that the court needed to decide were whether the defendants made misleading representations that breached the ACL, and if so, whether the second respondent, Ms Grubisa, was liable as an accessory by aiding, abetting, or being knowingly concerned in the contraventions. Specifically, the court had to determine whether Ms Grubisa had actual knowledge of the misleading and deceptive nature of the representations she made or assisted in making. The court also needed to consider whether Ms Grubisa’s involvement constituted accessory liability under either a narrow or wide interpretation of that concept.

In its reasoning, the court found that Ms Grubisa had actual knowledge of the misleading and deceptive nature of the representations made. It was determined that she understood the legal reasoning in effect of Sharrment and was aware that this case did not support the legitimacy or effectiveness of the asset protection structure taught in the MWC program. Consequently, Ms Grubisa was found to be liable as an accessory to the contraventions of the ACL. The court concluded that the ACCC was entitled to the declarations it sought regarding the contraventions of the ACL. The matter of costs was reserved for determination at the conclusion of the proceedings.

The orders made by the court were that the costs of the proceedings to date be reserved and that the proceedings be listed for case management at 9.30 am on 23 April 2024. The entry of these orders was governed by Rule 39.32 of the Federal Court Rules 2011.