In a single judge decision delivered on 7 December 2021, the Supreme Court of NSW has provided guidance on what is required of AFCA in its procedures to determine factual disputes.

In the decision of Australian Capital Financial Management Pty Limited v Australian Financial Complaints Authority Limited (2021) NSWFC 1577, Ball J in the Supreme Court of NSW made a number of findings concerning an application for judicial review of an AFCA decision. 

The 16 July 2021 decision in LNCP002 Pty Limited v Akcin [2021] NSWSC 848 has highlighted the obligations of lenders and financiers to act fairly and in good faith with respect to borrowers in mortgage lending, and to do what they have promised to do.

Holman Webb Lawyers is proud to relay that the firm has been listed as a finalist in two categories in the Lawyers Weekly Australian Law Awards 2021:

• Law Firm of the Year
• Insurance Team of the Year

Click through for more information on this year's finalists, and upcoming winner announcements.

In the decision of Mason v Cashel Financial Services Pty Limited [2021] NSWSC 201 delivered on 9 March 2021, the Supreme Court of NSW confirmed that an indemnity in a contract between an AFSL holder and its authorised representative, entitled the AFSL to recover an insurance excess and deductible incurred to settle a claim brought by a third-party investor arising from the conduct of the representative.

The decision makes clear what has been known for a long time: that a properly drafted indemnity gives a clear right to license holders to recover far reaching losses arising from the negligence and omissions of authorised representatives. 

In a decision of the NSW Supreme Court given on 26 November 2020, the Court has found that AFCA has no jurisdiction to determine a dispute against an AFSL holder where the complaint arises from the conduct of its representative allegedly acting outside their authority.

Recent reports that former NRL player Benny Elias was scammed out of $860,000 when hackers impersonated his lawyer during a property transaction come as an important reminder to be extra careful when transferring money online.

Two recent cases involving SMSF auditors highlight the potential liability of auditors in undertaking audits of SMSF’S and the need for auditors to obtain evidence to support the opinions expressed. Find out more in our April 2019 Accountant Update

The Treasury Laws Amendment (2017 Enterprise Incentives No. 2) Act 2017 (Cth) amended the Corporations Act 2001 (Cth) from 1 July 2018 to impose a prohibition on the enforcement of rights against a company including contractual termination rights arising on the occurrence of an insolvency event in relation to that company.

The cryptocurrency revolution is well under way. The new form of currency has begun to revolutionise financial transactions in ways that society is still starting to grasp. While still being a volatile currency, its value rose from US$1,000 at the beginning of the year to nearly US$16,000 per coin as of December 2017. More and more people are getting on board with this new cryptocurrency and, as recently as November 2017, several Australian home owners have even begun accepting Bitcoin payment for their property. There appears to be no limits to the use and growth of cryptocurrency. But cryptocurrencies still remain outside the scope of the regulated financial system. That is, until now – sort of.

Key Takeaways:

• Insolvency legislation to create a safe harbour for directors from insolvent trading claims in certain circumstances has received royal assent.
• A director will be entitled to claim the protection of the safe harbour upon developing a course of action reasonably likely to lead to a better outcome.
• To utilise the safe harbour, a director should seek timely advice from an appropriately qualified professional.