POWERED BY MOMENTUM MEDIA
Colonial and CBA conflicted remuneration case dismissed
Action against Colonial First State and Commonwealth Bank alleging breaches of conflicted remuneration laws have been dismissed by the Federal Court.
The Australian Securities and Investments Commission (ASIC) had alleged breaches of conflicted remuneration laws but the Federal Court found Colonial did not breach the law when it agreed to pay CBA to distribute Essential Super.
CBA staff signed up over 390,000 individuals to the Essential Super product between July 2013 and June 2019.
Justice Anderson found the payments made by Colonial to CBA did not constitute benefits within the definition of ‘conflicted remuneration’ and that the statutory context of the definition focused on situations such as where a financial adviser had a financial incentive.
The case had been used as a case study during the Hayne Royal Commission.
ASIC deputy chair, Sarah Court, said: “ASIC pursued this case because we were concerned that the arrangements between Colonial and CBA had the potential to influence the choice of financial product recommended to retail clients or the advice given to retail clients. ASIC will carefully consider the judgment.”
AUTHOR
Laura Dew
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
Recommended for you
The financial services company has made two senior appointments to its super and investments leadership team.
The $89 billion fund has named co-chief investment officers following the resignation of Andrew Lill earlier this month.
The industry body is adding 25 years of financial services experience to its leadership team with a new appointment.
The industry body has welcomed a new deputy CEO and a new executive general manager for policy.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
32.57 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
32.09 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
27.42 3 y p.a(%)
