Legat and Australian Securities and Investments Commission

This matter concerned an appeal by the Australian Securities and Investments Commission (ASIC) against a decision of the National Consumer Credit Protection Commissioner (the Commissioner) regarding a banning order against Mr Legat. ASIC sought to increase the duration of the banning order, which prohibited Mr Legat from engaging in any credit activities for a period of three years.

The primary legal issue before the court was whether the Commissioner's decision to impose a three-year banning order was appropriate, or if a longer period was warranted. This required the court to consider whether Mr Legat was likely to contravene credit legislation in the future, and whether he was a fit and proper person to engage in credit activities, with a view to protecting consumers and achieving specific and general deterrence.

Deputy President McCabe found that Mr Legat's conduct, which involved a model of operation designed to avoid interest rate caps and constituted misleading and deceptive conduct, demonstrated a lack of diligence, competence, and judgement, as well as a contempt for previous court and tribunal decisions. Consequently, the court varied the Commissioner's decision, increasing the banning period from three years to five years.