Risk Regulatory Update

Mayfair 101 head suing ASIC for defamation, lodges High Court appeal

James Mawhinney is taking the corporate regulator, the Australian Securities and Investments Commission (ASIC), and deputy chair Sarah Court to court on accusations of defamation after a media release published in September 2022. The media release published on 15 September said that the federal court had overturned a 20-year ban against Mawhinney, while also stating that almost 500 investors were owed around $211 million.

Mawhinney is alleging that the media release conveyed the implication that he knowingly misled the public by marketing high-risk products as low risk, and caused 500 investors in the Mayfair 101 group to lose $211 million and that he may cause further harm unless halted by the court.

Mawhinney is seeking claims for damages and aggravated damages for his reputation, allegedly, being ‘seriously injured’ with ‘distress and embarrassment’ arising from the media release.

On 12 October ASIC amended the online media release saying Mawhinney denied any wrongdoing in relation to the matter. ASIC must now remit its injunctions for another hearing after interim injunctions restrain Mawhinney and any company he controls from receiving or soliciting funds in connection with any financial product, advertising or promoting any financial product, and removing from Australia any assets acquired with funds received in connection with any financial product.

Mawhinney has filed an application for special leave to the High Court, saying ASIC’s right to re-litigate the case against him is denying him procedural fairness.

Life Code grows with domestic violence policy and genetic testing moratorium updates

The new Life Insurance Code of Practice has new consumer protections added with the very first life insurance industry guidelines on family and domestic violence and the genetics moratorium.

From July 2023, insurance companies must develop and publish their policy on supporting people experiencing family and domestic violence, with the goal of helping the industry navigate this tricky area. The new guidelines set out 11 areas that the policy could cover.

The life insurance industry is to give ‘immunity’ to any genetic tests taken while the moratorium is in place indefinitely. The moratorium has been in place since July 2019, and means Australians taking out life insurance do not have to disclose the results of genetic testing.

Check out the new domestic violence guidelines and the new life code.