Macrossans Lawyers Brisbane law firm

FICS has the power

The Federal Court brought some Christmas cheer to Westpoint investors, ruling that the Financial Industry Complaints Service (FICS) can resolve complaints against financial advisors.

Justice Finkelstein rejected the argument that FICS could not handle complaints because Westpoint promissory notes were not 'financial products' under the Corporations Act.

FICS, a free service, will now deal with over 300 registered complaints.

Beneficiary rights

Justice French of the Federal Court has ruled in favour of secured creditors in relation to some trust assets associated with the Westpoint debacle in ASIC, re Richstar Enterprises Pty Ltd –v0 Carey (No. 6) and Ors (2006).  The secured creditors argued they had the power.

While a beneficiary of a discretionary trust did not have sufficient interest to appoint a receiver to property held on trust by a third party, Justice French ruled the secured creditors could appoint a receiver because the trustees were the alter ego of the beneficiaries.