Federal Court Imposes A Pecuniary Penalty Of $20 Million For False Or Misleading Representations
This article aims to analyze the recent decision of the Federal Court imposing a pecuniary penalty of $20 million for false or misleading representations on the Colonial First State Investments Limited ( Colonial ). Summary Of Facts The cited case is Australian Securities and Investments Commission v Colonial First State Investments Limited [2021] FCA 1268. Colonial in this case admitted that between 2014 and 2016 it designed and implemented a communications campaign, via letters and telephone calls with nearly 13,000 of the members of its FirstChoice Personal Super product, in which it made false or misleading representations about members’ entitlements in relation to their superannuation investments. The Court noted that Colonial’s conduct in sending 12,911 letters on or about 22 April 2014 to members of its FirstChoice Personal Super product from whom Colonial did not hold an investment direction (as defined) and who had accepted superannuation con...