I’m sorry corporate Australia. But it can’t be delayed any longer. The Courts say it’s over.
It’s time the short-term band-aid solutions of profit-led first behaviours be ripped-off & replaced with the long-term salve of purpose-led fairness. It will feel soooo much better. I promise.
From Michael Pelly in the AFR, Nov 1: “ASIC and top financial services lawyers are hailing the “the birth of a new legal obligation” of fairness when selling advice that could ultimately spread to other areas of business conduct”.
But that’s not all…
“And they warn that the new obligation arising from the landmark decision in the Westpac financial advice case this week will be a higher standard for business because it is primarily concerned with outcomes”.
Let’s hear that again…outcomes!
“The Full Federal Court judgement also looks to have stripped back banking royal commissioner Ken Hayne’s six principles for business conduct to just one – “be fair””.
Finally…from Justice Edelman. “The first aspect is fairness in the context of corporate purpose that we’ve been talking about so much. Fairness in that respect is not a corporate purpose in itself, it’s a matter of achieving corporate purposes …” Be purpose-led to create fair outcomes. Sounds fair enough to me.