From www.claytonutz.com: ASIC has successfully pursued civil penalties against Firstmac Limited for breaches of the design and distribution obligation (DDO) regarding the High Livez investment scheme, highlighting the court’s emphasis on deterrence.

Despite minimal financial harm to consumers, the court imposed an $8 million penalty, asserting that penalties do not need to correlate with the level of harm caused.

The ruling underscored the necessity for financial product distributors to ensure compliance with DDO and to properly assess the suitability of products for their target market.