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 $170 billion fund has announced an internal promotion to the newly created role.
Blue Owl Capital, a US asset manager with its eye on ‘marquee investors’ like super funds, has announced the appointment of a senior Future Fund executive as its newest managing director.
The Association of Superannuation Funds of Australia has appointed a new director representing industry funds, among a number of other appointments in recent months.
The Association of Superannuation Funds of Australia has tapped an experienced public policy executive as head of policy and advocacy.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI First Close USD
66.99 3 y p.a(%)
2
Hills International
62.62 3 y p.a(%)
3
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
32.95 3 y p.a(%)
4
Acadian Global Equity Long Short Class A
32.82 3 y p.a(%)
5
CFS FC Acadian Global Equity Long Short
32.44 3 y p.a(%)
Add new comment