Executive Summary
This report states a review of the process of dispute in relation to inappropriate financial advice provided by the financial service provider with investment in the managed funds. The applicants, which are Ms E and her two sons, Mr A and Mr C, claimed for the losses which resulted from the failure of performing his duty for the clients of financial service providersMr R. The Panel has made the decision for this financial dispute following the Australian legislation- Corporation Act (Cth) 2001, which indicated that the FSP failed to provide some key disclosure requirements associate with the financial advice to the applicants and breached a number of statutory obligations regarding the action. However, those breached of duty did not directly resulted in the loss of the applicants. Moreover, the applicants also had the responsibility of their contribution of loss, which reduced the amount of compensations in total.
The first part of this report would briefly state the background of the dispute, which showed as above. And then, the decisions of the adjustor, which is the Panel in this circumstance, would be illustrated regarding the relevant legislation. Thirdly, the financial loss and other claim would be indicated based on the inappropriate financial advice and also concern about the other factor impact on the compensation, which are the foreseeability test for the loss claimed by the applicants and the level of contribution from the applicants. Fourthly, it pointed out that the critique of the decisions made from the adjustor in response to the case. The strength of the evidence is that to prove the failure of providing the FSG and SOA, but these failures did not cause the loss of the applicants. While it still has some weakness about the evidence, such as the insufficient evidence for proving the
