Insignia under no obligation to disclose misconduct, court hears

The Australian Financial Review2023-06-12

Wealth giant Insignia Financial has argued it was under no obligation to disclose “appalling” misconduct to investors who are running a class action over losses dating back to 2015.Nicholas Owens, SC,...

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href=https://www.afr.com/companies/financial-services/insignia-under-no-obligation-to-disclose-misconduct-court-hears-20230612-p5dftd><strong>The Australian Financial Review</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Wealth giant Insignia Financial has argued it was under no obligation to disclose “appalling” misconduct to investors who are running a class action over losses dating back to 2015.Nicholas Owens, SC,...</p>\n\n<a href=\"https://www.afr.com/companies/financial-services/insignia-under-no-obligation-to-disclose-misconduct-court-hears-20230612-p5dftd\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4009","symbol_name":"广告","start_time":0,"source_url":"https://www.afr.com/companies/financial-services/insignia-under-no-obligation-to-disclose-misconduct-court-hears-20230612-p5dftd","article_id":"2342687904","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2342687904","pubTimestamp":1686552360,"sourceInfo":{"source_id":"afr_stock","name":"The Australian Financial Review"},"weMediaInfo":null,"summary":"Wealth giant Insignia Financial has argued it was under no obligation to disclose “appalling” misconduct to investors who are running a class action over losses dating back to 2015.Nicholas Owens, SC,","collect":0,"end_time":0,"defaultTopTitle":"afr.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4009":"广告"},"translate_title":"Insignia没有义务披露不当行为，法院审理","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ISIG":1},"content_text":"Wealth giant Insignia Financial has argued it was under no obligation to disclose “appalling” misconduct to investors who are running a class action over losses dating back to 2015.Nicholas Owens, SC, representing Insignia, told the Federal Court last week the principal cause of the share price fall was “sensationalist” reporting by The Sydney Morning Herald in June 2015 about alleged staff insider trading.Nicholas Owens SC, conceded there were “mistakes along the way within IOOF”.  Edwina PicklesMr Owens also said “rational investors” would not have been deterred by the revelations.The claim against the ASX-listed group, formerly known as IOOF, resumes on Tuesday after the first three days were taken up with opening submissions.Led by Shine Lawyers and bankrolled by litigation funder LLS, the action alleges the company failed to disclose material misconduct including alleged insider trading and conflicts of interest, resulting in financial losses for shareholders.Michael Hodge, KC, for the shareholders, spent two days arguing IOOF had breached its continuous disclosure obligations by not revealing the misconduct when it became aware of it in 2014.“There’s an observable drop in the share price... only explicable by the disclosure of the information,” he told the court.On the day of the first Herald reports on IOOF, shares fell 13 per cent to $1.42 each.Mr Owens conceded “there were mistakes along the way within IOOF, and one can even accept, in some instances, there was conduct that cannot be excused”.But he said the law attributed “a very narrow interest to people who are investors”.“It’s really, does this translate to a dollar more or a dollar less in my pocket?” he added.AdvertisementMr Owens said there was no allegation of “broader systemic issues”.“It is not submitted, as we understand it, that any of these errors of system did, in fact, produce any negative outcome for any customer, let alone any material financial impact for IOOF,” he said.“One cannot reason from that and say in March 2014 any rational investor, if being told of all of those facts, would have said, ‘I am concerned that IOOF is going to earn less money in the future than I thought it otherwise would’.“There was no reason, we say, in March 2014 why IOOF ought to haveappreciated that it needed to make any disclosure to the market in relation to improper share trading and, indeed, we say it would have been positively misleading for it to do so.”The same applied when it came to another allegation in the report – staff cheating on exams.“It’s appalling conduct. But, again, the question is, in the narrow focus of an investor, does it translate to IOOF losing money.”AdvertisementMr Hodge noted that IOOF had conceded at least 16 breaches of its own risk policies, including unit pricing errors.However, Mr Owens argued they were not significant.“They’re all the regrettable manifestation of the sorts of things that happen from time to time in a large company, but all they show is that this company has a very effective system in place for detecting breaches and then acts appropriately to remedy them.”Insignia – formed by the merger of IOOF and National Australia Bank’s MLC – has lost about 65 per cent of its market value since the banking royal commission, which heard evidence of misconduct by senior executives at the then-IOOF.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2342687904"}