Regulatory Alerts2026-01-30
Federal Court orders Australian Unity Funds Management to pay $7 million penalty for failing to confirm product suitability for investors
The Federal Court ordered Australian Unity Funds Management to pay a $7.125 million pecuniary penalty and publish adverse publicity notices for breaching design and distribution obligations by failing to verify investor suitability. The regulator found that the company distributed interests in the Australian Unity Select Income Fund to hundreds of retail investors without requiring or reviewing mandatory suitability questionnaires, exposing them to inappropriate products. This judgment underscores the serious consequences for product issuers that neglect reasonable steps to ensure distributions align with their Target Market Determinations.
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