Big Un
Below is what ASIC has said about Big Un in its ASIC Integrity Update that was issued today: We have restricted Big Un Limited from eligibility to issue a reduced content prospectus until 2 May 2019. Our decision follows Big...
Woolworths – you need to...
I' m an avid traveler - I try and collect as many frequent flyer point as possible. A few weeks ago I received an offer from Woolworths - spend $165 in-store or online and get 2,400 hundred points. The promotion...
NAB – mis-sold loans
The NAB has announced today that it has sacked or disciplined 52 staff who have been involved in the mis-selling of loans - what this means is that loans have been approved that should not have been approved under the...
Guvera – look at the...
There is apparently going to be a class action commenced with respect to the failed float of Guvera. People thinking about participating in that class action should also be looking very closely at the circumstances in which they came to...
Double standards
It is not new news, that in life, there are many double standards such that I wonder if it is even worthwhile commenting on this matter - but I can't resist doing so. The High Court is currently hearing the...
Dear Colleagues!
I handle a lot of matters at the FOS. In one matter, an issue has arisen about jurisdiction. Despite not giving me an opportunity to respond, the FOS has decided that it does not have jurisdiction (on grounds that would...
FOS UNPAID DETERMINATIONS
There is currently a debate about a compensation scheme of last resort being put in place for financial services compensation claims. In this context, it is worth thinking about what the latest statistics from the FOS tell us about the...
34 and still counting…..
Today, ASIC announced its 34th Banning Order with respect to its Wealth Management Project. The Wealth Management Project focuses on the conduct of the largest financial advice firms - NAB, CBA, ANZ, Macquarie and AMP. The irony, of course, being...
Beware the end of June
A big part of my work concerns disputes about bad financial advice. Over the years, I've noticed that I often end up talking about events that happened at the end of June. The reason for this is, of course, tax....
Quintis – look at the...
Quintis (formerly known as TFS) is in deep financial trouble - it is possible that Quintis will join a long line of failed agricultural managed investment schemes such as Great Southern and Timbercorp. As was the case with the other...
The End of the FOS,...
The Government has tonight announced that the FOS, the CIO and the SCT are all to be replaced by a new Government Authority to be called The Financial Complaints Authority. My impression is that it will be able to award...
Are All Financial Planners Hopeless?
A big part of my work involves litigation about financial planning advice. Recently, I was at a party (I know that this is a cliché but it did actually happen). I was speaking to a friend who is familiar with...
TFS – the New Great...
A company that specializes in short selling (Glaucus Investments) has issued a Research Report about the sandalwood producer TFS. The effect of the Report is that TFS has characteristics of a Ponzi Scheme and that it is a matter...
The FSG – The SOA’s...
A previous post set out my views about how useless SOAs are. This post is about the FSG, the SOA's even more useless companion. The FSG's primary purpose is to disclose conflicts of interest that derive from an adviser's ownership...
Beware Smithton Tasmania
I act for clients (based in WA) who were induced by a financial planning firm to buy a house and land package for a house to be built in a small country town in Tasmania called Smithton. The houses were...
The SOA – Worse Than...
A major personal concern of mine (being self-employed and having dependents) is the adequacy of my insurance cover. What I would like to do is to speak to a quality adviser for 30 minutes and get oral or very brief...
Increasing the FOS’ Compensation Caps
It seems to be inevitable that the FOS' compensation caps will be increased. On its face this seems like a good thing for consumers but the reality will be very different. The problem is that the FOS system only works...
Business Ethics – Spam E-mail
I recently was tricked by a spam e-mail into providing some personal information (before I realized that the e-mail was a scam) - the e-mail appeared to refer to a promotional offer being made by Woolworths. The idea behind the...
The Banking Tribunal
As a way of avoiding having a Royal Commission into the Banks' conduct, the Government is now floating the idea of introducing a banking tribunal. My impression is that it will be something like the FOS with its key feature...
FOS -Unpaid Determinations
For a number of years the FOS has been disclosing the fact that a very significant number of the Determinations that it has issued in the Investments and Advice area have not been paid (this being the area that financial...
Ambulance chasers
Some years ago I was called an ambulance chaser in an article that was published in Money Management magazine - an event that I took great exception to at the time and something that still makes me angry when I think...
ASIC’s inquiry into IOOF
On 8 July 2016, ASIC made a media release about an inquiry that it has conducted into IOOF. The inquiry seems to have uncovered a multiplicity of issues. However, what is strange is that no enforcement action is being taken...
Facebook – an Insurance Company’s...
I've just read the Supreme Court of NSW Court of Appeal Judgment in TAL Life Ltd v Shuetrim. The case is about how Insurers should go about determining whether a person meets the definition of being totally and permanently disabled. I...
More Nonsense from ASIC
ASIC made this media release today: ASIC has cancelled the Australian financial services (AFS) licence of Queensland-based Advamode Financial Pty Ltd (Advamode). The cancellation was made at Advamode's request after the company was placed into liquidation on 4 May 2016. The...
Do we need a Royal...
As everyone will be aware there is currently a major political issue about whether there should be a Royal Commission into Bank misconduct and into misconduct generally in the financial services industry. In my view we don't need a Royal...
ASIC – What Are You...
On 8 June 2016, ASIC issued a media release about how it had banned Wayne Meadth for 1 year. The banning order relates to Mr Meadth's conduct as an ANZ financial planner. ASIC says that it found Mr Meadth to...
Banks + Insurance + Super...
Many people obtain insurance as part of their superannuation. These policies are actually taken out by the Trustee of the Super Fund on the member's behalf. The Trustee of a Super Fund must act in the best interests of its members and...
Insurance – Code of Practice
Income protection, trauma and total and permanent disablement insurance are all extremely important ways of managing the risk that you will suffer an illness or accident such that you cannot work for a significant period or can never work again....
Complaint to ASIC about Comminsure
This post is about the first of the complaints to ASIC that I referred to in my post of 20 April 2016. It is a complaint about a TPD claim - my client has a very serious illness - he...
ASIC – The Tough Cop...
On 19 April 2016, Greg Medcalf said the following to the Australian Financial Review: ASIC is the tough cop on the beat and where we see people getting a raw deal we will not hesitate, not for one second, to...
The FOS and Comminsure
On 15 April 2016, Comminsure announced that it had appointed three independent members to its new Claims Review Panel. As Comminsure tells us, this panel has been set up in the wake of recent media criticism of its claims process. What...