Australian Securities and Investments Commission v Select AFSL Pty Ltd (No 3)

This case involves proceedings brought by the Australian Securities and Investments Commission (ASIC) against Select AFSL Pty Ltd, BlueInc Services Pty Ltd, Insurance Marketing Services Pty Ltd, and Russell Howden, concerning numerous breaches of the Corporations Act 2001 (Cth) and the Australian Securities and Investments Commission Act 2001 (Cth). The court was tasked with deciding on the appropriate assessment of pecuniary penalties and other relief. The defendants did not deliberately contravene the relevant laws, and it is not contended that the contraventions arose in circumstances of dishonesty. However, the defendants sought to downplay the seriousness of their conduct, and deterrence is a dominant consideration. The court found the defendants' approach to their obligations distinctly irresponsible, particularly given the competitive environment in which they operated.

The court considered the totality of the circumstances, including the nature of the contraventions, the defendants' lack of insight and acceptance of responsibility, and the need for deterrence. The court imposed pecuniary penalties on the defendants, including Select, BlueInc Services, and IMS, and also issued disqualification and restraining orders against Mr Howden. Additionally, the court ordered the defendants to establish a compliance, education, and training program, and to provide regular training for their staff. The court's decision emphasised the importance of holding an AFSL and the legal obligations that come with it, which must be taken seriously and carried out responsibly.

The court made orders for pecuniary penalties, disqualification and restraining orders, a probation order, and a costs order. The defendants were required to pay ASIC's costs, to be agreed or assessed. The court also ordered the defendants to establish a compliance, education, and training program, which included appointing a compliance officer, engaging a consultant, and implementing various policies and procedures to ensure ongoing compliance with the relevant legislation.