今日热门事件commenced court action in the Federal Court today against RI Advice Group Pty Ltd (RI Advice) and a former financial adviser, John Doyle.聽RI Advice was, until its recent acquisition by IOOF, an ANZ financial advice business.
今日热门事件is alleging that RI Advice failed to take reasonable steps to ensure that Mr Doyle provided appropriate advice, acted in clients鈥� best interests and put his clients鈥� interests ahead of his own, as required by law.聽Mr Doyle was an authorised representative of RI Advice between May 2013 and June 2016.
今日热门事件is also taking action against Mr Doyle, alleging that he gave inappropriate 鈥渃ookie cutter鈥� advice to retail clients to invest in complex structured financial products called Macquarie Flexi 100 Trust and Instreet Masti 36 and 38, without taking into account their financial goals or risk tolerance.聽
The impacted clients were, in some cases, preparing for retirement.聽 今日热门事件alleges that Mr Doyle received upfront and ongoing commissions for each of his clients鈥� investments in the structured products.
今日热门事件alleges RI Advice knew, or should have known, that there was substantial risk Mr Doyle was not complying with his obligations under the law and was repeatedly recommending structured products to his clients, bypassing compliance processes.聽今日热门事件further alleges RI Advice did not take reasonable steps in response.
今日热门事件also claims RI Advice contravened general obligations as an Australian Financial Services Licence holder and is seeking compliance orders from the Federal Court to prevent similar contraventions occurring in the future.
The maximum civil penalty for contraventions alleged against RI Advice is $1 million per contravention.聽For Mr Doyle, the maximum civil penalty is $200,000 per contravention.
The conduct of both RI Advice and Mr Doyle was examined as a case study on 鈥楤ad Advice鈥� as part of the Financial Services Royal Commission ().
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Editor's note:
This matter has been listed for a first case management hearing before Justice Moshinsky at 9:30 am on 6 December 2019 in Melbourne at the Federal Court of Australia.
Editor's note 2:
Orders were made on 5 December 2019 setting down a timetable for the progression of the matter.聽The next case management hearing is listed in the Federal Court on 27 March 2020.
Editor's note 3:
This media release was updated聽on 17 January 2020 to include ASIC's Statement of Claim.
Editor鈥檚 note 4:
Orders were made on 27 March 2020 setting down a timetable for the progression of the matter, including that a hearing of liability issues take place on a date after 1 December 2020.
The Court also ordered the parties to complete a number of steps towards the liability hearing, including the filing and service of: a response to the request for particulars from ASIC鈥檚 Statement of Claim; any affidavits of lay witnesses; and any expert evidence.
A further case management hearing will take place on a date after 15 September 2020.
The Court also ordered that, at the close of ASIC鈥檚 case, Mr Doyle notify the Court whether he wishes to lead evidence in his defence and take all necessary steps to do so.
Editor's note 5:
The trial of these proceedings is set down for hearing on 1 March 2021.
Editor's note 6:
A case management hearing is set down for 13 November 2020.
Editor's note 7:
The trial on liability concluded on 23 March 2021 and judgment on liability was reserved in relation to RI Advice Group Pty Ltd.
In relation to Mr John Doyle, the Court made the following declaration:
鈥淥n various occasions during the period 1 November 2013 to 30 June 2016, as set out in the Schedule attached to this order titled 鈥淚nstances of Advice鈥�, [Mr Doyle] contravened s 961Q(1) of the Corporations Act 2001 (Cth) in that the [he] contravened ss 961B, 961G, 961H and 961J of the Corporations Act.鈥� The schedule titled 鈥淚nstances of Advice鈥� lists 13 pieces of advice given by Mr Doyle relating variously to the Macquarie Flexi 100 Trust and Instreet Masti structured products.
The Court also ordered that the matter be listed for a case management hearing in relation to a further hearing on the issues of relief and costs as between 今日热门事件and Mr Doyle on a date to be fixed.
Editor's note 8:
The case management hearing for a further hearing on the issues of relief and costs between 今日热门事件and Mr Doyle has been listed for 17 September 2021.
Editor's note:
The matter has been listed for a penalty hearing on 1-2 February 2022.