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Receiving an unfavourable decision from the Australian Financial Complaints Authority (AFCA) can be frustrating and disappointing. Whether you disagree with the finding of fault or the amount of loss calculated you could have options to pursue your claim. In our experience we recommend taking the following steps before deciding whether to accept or reject an AFCA decision:

The Parliamentary Joint Committee is conducting an inquiry into Threshold Limits for wholesale investor and wholesale client tests. The inquiry is seeking submissions from the public to comment on the existing definition of the wholesale investor test for offers of securities and the wholesale client test for financial products and services.

Recent ASIC data shows that in the 9 months from 1 July 2023 to 31 March 2024 a 36.2% increase in business insolvencies.

Contracts for differences (CFDs) are financial products that allow an investor to speculate on the price of an asset without having to own it. Usually, the contract is between the investor and a financial institution in which investors take a position on the future value of an asset. 

The Australian Securities and Investments Commission (ASIC) has successfully pursued Vanguard Investments Australia for making misleading statements in respect of the Vanguard Ethically Conscious Global Aggregate Bond Index Fund.

On 20 March 2024 ASIC banned QLD-based financial adviser Shane Rose from providing any financial services. Mr Rose, recorded as the managing director of Private Wealth Group, was held by ASIC to have engaged in conduct that was dishonest, by using the client invested funds for purposes other than which they were given.

Recently a client of Morgan Stanley successfully obtained an AFCA decision against Morgan Stanley for bad financial advice they received. In the complaint, the client alleged that they had received advice from a Morgan Stanley advisor to invest an inheritance in 75% growth assets. It was also alleged that the investments purchased lacked diversification which was beyond their risk profile.

Class actions in Australia have become an important mechanism for seeking justice and compensation in Australia. They allow a group of individuals with similar claims to collectively pursue legal action against a common defendant(s). You may have been involved in a class action or want to pursue one.

Are you a wholesale investor, but unhappy with the advice you received from your financial advisor? FD Legal can assist you with recovering compensation.

Have you lost money because of poor advice from a financial advisor? You may be able to sue for compensation.When it comes to managing our finances, we often rely on the expertise and guidance of financial advisors. However, there may be instances where their actions or advice fall short of our expectations, leading to financial losses or other negative consequences. In such cases, it is important to understand when you can sue your financial advisor for compensation and the steps involved in pursuing legal action in Australia.

In a recent AFCA case, a scam victim was awarded $245,000 in compensation (plus interest and expenses) in respect of an investment scam dispute with the ANZ Bank.

Recent reports issued by the Australian Securities and Investments Commission (ASIC) and Australian Financial Security Authority’s (AFSA) have provided some important insights into both Corporate and Personal Insolvencies.