Australian Securities and Investments Commission v Select AFSL Pty Ltd (No 2)

The case involved a dispute between the Australian Securities and Investments Commission (ASIC) and several defendants, including Select AFSL Pty Ltd, over alleged contraventions of various sections of the Corporations Act 2001 (Cth) and the Australian Securities and Investments Commission Act 2001 (Cth). The primary issues related to the provision of conflicted remuneration to agents, misleading or deceptive conduct, and the failure to comply with financial services laws. The court had to determine whether the agents' acceptance of benefits constituted conflicted remuneration, whether the agents engaged in misleading or deceptive conduct, and whether the first defendant breached its duties under the Corporations Act. The defendants also argued that the conduct of the agents should not be attributed to them.

The court found that the benefits received by the agents were indeed conflicted remuneration, as they could reasonably be expected to influence the financial product advice given. The court also found that most of the alleged contraventions of the consumer protection provisions were established. Regarding the first defendant's duties under the Corporations Act, the court found that the director breached his duty of care and diligence by failing to take reasonable steps to prevent the contraventions. The court further found that the director was knowingly involved in the contraventions by the other defendants.

The court considered the evidence provided by ASIC, including statements made by witnesses during examinations under the ASIC Act and before the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. The court also considered the submissions made by both parties and the relevant legal principles.

In conclusion, the court found that the defendants had contravened various sections of the Corporations Act and the ASIC Act. The court ordered the parties to confer and provide draft orders to chambers, giving effect to the reasons for judgment and providing for a timetable to progress the matter to a hearing on penalty.