Investors Exchange Limited v Australian Financial Complaints Authority Limited (No 2)

Investors Exchange Limited sought an order compelling the Australian Financial Complaints Authority Limited to pay the second respondent a sum of money, along with interest, as determined by an arbitrator. The dispute was heard by the Federal Court of Australia. The primary issue before the Court was the appropriate form of the order for compelling the payment, specifically whether the interest should be calculated using simple or compound interest. The applicant argued for simple interest, while the second respondent contended for compound interest.

The Court considered the submissions from both parties and noted that while the difference in the amount of interest was minimal, the principle behind the calculation method was significant. The Court ultimately determined that the correct method of calculating interest was compound interest, as stipulated by the applicable legislation and the arbitration award. The Court found that the use of compound interest was consistent with the equitable remedy of specific performance, which aims to restore the parties to their original positions as closely as possible.

The Court dismissed the application seeking to alter the form of the order. It directed the applicant to specifically perform the arbitration award by paying the second respondent the determined sum, together with compound interest at the specified rate. The Court also ordered the applicant to pay the costs of the proceeding, including the application filed on 14 November 2019. The costs were to be assessed on the standard basis.