Australian Securities and Investments Commission v Macro Realty Developments Pty Ltd

The Australian Securities and Investments Commission (ASIC) filed a case against Macro Realty Developments Pty Ltd (Macro) and two other defendants concerning the promotion and marketing of a financial product, which allegedly contravened several provisions of the Corporations Act 2001 (Cth) and the Australian Securities and Investments Commission Act 2001 (Cth). ASIC sought an injunction and declarations to restrain the defendants from promoting the investment proposal, entering into any related arrangements, performing acts connected to the proposal, and handling funds in relation to it. The case was heard in the Federal Court of Australia.

The central legal issues before the court involved whether the defendants had engaged in misleading or deceptive conduct by promoting a financial product, thereby contravening sections 181(1), 1041H, and 12DA of the Corporations Act and the ASIC Act. Additionally, the court examined whether the defendants had provided financial services without the required license, in breach of sections 911A, 762C, 763A, 763B, and 766B of the Corporations Act. The court also considered the appropriate relief, including injunctive relief and declarations, to prevent the continuation of the alleged unlawful activities.

The court found that the defendants had indeed engaged in misleading or deceptive conduct and had provided financial services without the necessary license. It was established that Macro and the other defendants had promoted the financial product in a manner that contravened the statutory provisions. Consequently, the court granted the injunctions and declarations sought by ASIC, restraining the defendants from engaging in the specified activities related to the investment proposal. Furthermore, Macro was ordered to pay ASIC's costs of the proceeding, including reserved costs, and liberty to apply was granted. The orders were entered in accordance with Rule 39.32 of the Federal Court Rules 2011.