Misleading or deceptive conduct – a warning in difficult times
In the course of what remains one of the most turbulent economic periods experienced, providers of financial services must remain vigilant when discussing, dissecting and analysing available market information and providing financial advice to clients.
The recent decision of Australian Securities and Investments Commission v Camelot Derivatives Pty Limited (In Liquidation)  FCA 414 highlights the potential for allegations of misleading or deceptive conduct to be raised against financial service providers.
Justice Foster’s judgment focused upon the key provisions that govern misleading or deceptive conduct in financial services, namely those contained within the Corporations Act 2001 (Cth) and the Australian Securities and Investments Commission Act 2001 (Cth) (ASIC Act).
Underwriters should bear these matters in mind when considering policy coverage issues or assessing the adequacy of the risk management strategies implemented by an insured