Investor Local Councils Win Against Bank, Ratings Agency and Investment Adviser Upheld

    View Authors June 2014

    In 2012 in a significant decision for financial advisers, the Federal Court of Australia found a foreign bank, credit agency and an Australian investment advisory company were all liable for misrepresentation with respect to the sale of a financial product to local councils in New South Wales (Bathurst Regional Council v Local Government Financial Services Pty Ltd (No 5) [2012] FCA 1200).

    ABN Amro Bank NV (ABN Amro), ratings agency Standard & Poor’s (S&P) and investment adviser Local Government Financial Services Pty Ltd (LGFS) appealed the original Federal Court decision to the Full Court of the Federal Court of Australia: ABN Amro Bank NV v Bathurst Regional Council [2014] FCAFC 65.