ASIC has largely won a landmark case against Melbourne businessman Bill Lewski, former federal health minister Michael Wooldridge and other directors of failed property group Prime Trust, with the High Court ruling the men had breached their duties as directors. The High Court found it “cannot ignore the injustice caused to members by an amendment that permits $33 million of their equity to be paid away without authority”. The Federal Court is to reassess the penalties and disqualification periods for the directors.
The royal commission will spend the next two weeks hearing evidence about misconduct and conduct falling below community expectations within Australia’s superannuation sector. We are representing many people that have been mislead and their nest egg was not what they expected for retirement. Reform is needed especially with our ageing population.
Renewed calls for a last resort compensation scheme to cover customers when their adviser's firm ceases to exist
SR Group is standing firmly with Professor Ramsay's review for the federal government recommending the establishment of a compensation scheme of last resort for victims of poor financial advice. With the Royal commission dedicating public hearings to financial advice and Dover showcased it is an area needing the most immediate attention of last resort compensation. Time for reform.
In a letter to Malcolm Turnbull last week Bill Shorten has suggested an extension of the inquiry, an apology and compensation scheme were the “least the government can do” in the future. SR Group sees this as a step forward in advocating for reform in the financial sector.
The big 4 banks have all come out this week and made submissions to the upcoming Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. Australia’s top 4 financial institutions each lodged submissions this week, summarising instances of misconduct and delinquency over the past decade. With the public hearings approaching on 12 February 2018, this is the first step, though a substantial one, towards fostering and maintaining transparency from our major banks.
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