Determination - 20 June 2014
Key issue: Whether a financial services provider breached its duty of care to a consumer in giving advice on an investment property transaction.
Summary of Determination
I find that the FSP gave incorrect advice to the consumer that she could afford to enter into a particular geared property investment. In so doing, I find that the FSP breached its duty of care owed to the consumer.
I find that, as a result of the FSP’s conduct, the consumer incurred a financial loss. However, I also find that there was contributory negligence on the consumer’s part, in that the consumer failed to take precautions against a foreseeable risk of harm.
I order that the FSP pay to the consumer the sum of
$116,380.50, being an amount equal to 80% of the total financial loss incurred by the consumer.
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