GDR v EKR

In this case, the father of the defendant applied for the appointment of a private company to manage his daughter's financial affairs. The daughter, who was found to be incapable of managing her own affairs, was represented by the public trustee. The dispute centred on the suitability of the private company as a financial manager, the necessity for the company to obtain a financial services licence, the issue of remuneration, and the potential conflict of interest arising from the private manager's personal interest in certain financial products. The court was required to determine whether the private manager was suitable and if any conditions should be imposed on the appointment.

The court held that the relationship between the protected person and the manager is that of principal and agent, not trustee and beneficiary, under the NSW Trustee and Guardian Act. Therefore, legal title in the protected person's property should not vest in the manager. The court also determined that the private manager would require a financial services licence and that no orders should be made unless and until the private manager obtained such a licence. The potential conflict of interest was noted, but the court did not make any orders at that time.

The court found that the private manager was not suitable for appointment as the defendant's financial manager until the company obtained a financial services licence and addressed the conflict of interest issue. The NSW Trustee and Guardian was appointed as the interim receiver and manager of the defendant's financial affairs. The court did not make any final orders at that stage, leaving the matter open for further application once the private manager had addressed the legal and conflict of interest issues.