ASIC won't appeal but may challenge costs Jul 18, 2007
Justice Jacobson found that Citigroup had legally contracted out of a fiduciary relationship by an explicit clause in its engagement letter with Toll. The judge also rejected ASIC's argument that the proprietary trading had amounted to insider trading. (Sydney Morning Herald)
ASIC initiates an unwanted exclusion zone Jun 30, 2007
The most succinct definition of a fiduciary relationship in Justice Peter Jacobson's judgement this week was: The distinguishing or overriding duty of a fiduciary is the obligation of undivided loyalty ... The pro-forma mandate letter describing the relationship between Citigroup and Toll, and signed by both parties, specifically excluded the existence of a fiduciary relationship between them ... And in fact, Neil Chatfield acknowledged in evidence that he did not pay any real attention to the... (The Age)
Trading and Chinese walls Jun 30, 2007
" By this standard it might have received the worst possible outcome. The judge rejected outright ASIC's view of how conflicts should be managed. Yet, thanks to a combination of the way the case was run and the wording of the Corporations Act, ASIC's expensive and high-profile litigation failed to produce a clear judicial statement of what banks should do. Section 912 of the Corporations Act contains a specific provision about "adequate procedures" for dealing with conflicts of interest. "ASIC's... (Sydney Morning Herald)
Risky lawsuit backfires on ASIC Jun 29, 2007
According to ASIC, Citigroup had a fiduciary relationship with Toll ... But he said there was no fiduciary relationship because of an exit clause in Citigroup's letter of engagement with Toll. (The Age, Australia -- Business)
ASIC just needed to give Citigroup a talking to Jun 29, 2007
At the core of the Citigroup case was the question of whether a sophisticated client and an investment bank can agree to contract away any fiduciary relationship and the potential for conflicts of interest. When ASIC originally launched the action it was seen as an attack on proprietary trading, although it morphed into a test case on fiduciary duties and an attempt to stretch the boundaries of the definition of insider trading. (Sydney Morning Herald -- Business)
Watchdog loses key insider trading case Jun 29, 2007
" Mr D'Aloisio said he had looked at the facts of the case upon his appointment in March and was confident the legal team had prepared a thorough case. ASIC's other claims - that Citigroup had breached its fiduciary relationship with Toll by trading in shares of the company it was attempting to take over - and an argument it had engaged in a conflict of interest, were also dismissed. Justice Jacobsen said the letter of engagement under which Toll retained Citigroup as its adviser specifically... (NEWS.com.au)
Citigroup cleared of insider trade Jun 28, 2007
He ruled that the bank did not have a conflict of interest in trading Patrick shares because it did not have a fiduciary relationship in its contract with Toll. "Citi Australia is pleased with the outcome handed down today by the federal court," the bank's Australian chief executive officer, Stephen Roberts, said in a statement. (CNN -- International)
Australian court dismisses insider trading charges against Citigroup Jun 28, 2007
Key to ASIC's case was its claim that Citigroup had a fiduciary relationship with Toll that obligated the bank to get permission from the company before trading in Patrick shares. Citigroup's defense was that the letter of engagement Toll used to hire Citigroup as its adviser "specifically excluded the existence" of a fiduciary relationship. (International Herald Tribune -- Business)
Issuers Advised to Step Off Conflict Merry-Go-Round: Joe Mysak Jun 16, 2007
There is a lack of understanding among many debt issuers about the appropriate roles of underwriters and financial advisers and the fiduciary relationship that each has or does not have with respect to state and local government issuers,'' the draft says. The draft, to be discussed by the association's executive board in October, says that unless the issuer has a dedicated debt management staff, it should hire a financial adviser. (Bloomberg -- Columnists)
Woman Convicted of Neglecting Retarded Kin Jun 7, 2007
Parsons, 44, of Fayetteville, also was found guilty of intentional neglect of an elder person, misappropriation of funds that belonged to an elder person and embezzlement by misuse of a fiduciary relationship, all felonies. Fayette County Assistant Prosecutor told the jury that Parsons left her 68-year-old cousin, , "to rot in her own filth." King died in December 2005, a week after a paramedic found her naked and covered in dried waste and sores, according to testimony during the trial in... (Fox News)
Caregiver guilty of felony neglect Jun 6, 2007
Jewell Parsons was found guilty of three felonies: intentional neglect of an elder person, misappropriation of funds that belonged to an elder person and embezzlement by misuse of a fiduciary relationship. Her cousin, Naomi King, died in December 2005, a week after paramedics took her to a hospital. (Charleston Gazette, WV -- News)
Fatal-neglect trial begins in Fayette court May 31, 2007
Jewell L. Parsons is charged with intentional neglect of an elder person, misappropriation of funds that belonged to an elder person and embezzlement by misuse of a fiduciary relationship. Her trial began Wednesday before Fayette Circuit Judge John Hatcher. (Charleston Gazette, WV -- News)
Tempers flare at financial meeting in Cromwell May 24, 2007
"There's a fiduciary relationship between a government and the people," Diaz insisted. Nor was Selectman Fran Monnes mollified. (Middletown Press, CT)
Housing Counsel: Protecting Your Association Assets May 7, 2007
Keep in mind that every board member has a fiduciary relationship to all the unit owners. I assume that you review your own bank statements on a monthly basis; you should do no less for the unit owners you serve. (RealtyTimes)
Visitor agreement Apr 29, 2007
Uploading, posting, emailing, transmitting or otherwise making available any content that you do not have a right to make available under any law or under any contractual or fiduciary relationship (such as inside information, proprietary and confidential information learned or disclosed as part of employment relationships or under nondisclosure agreements). Uploading, posting, emailing, transmitting or otherwise making available any content that infringes any patent, trademark, trade secret,... (Atlanta Journal-Constitution)
N.Y. Court Refuses to Revive Smoking Suit Filed Years After Limitations Period Apr 24, 2007
Finally, the justices said that Robare had failed to show a special fiduciary relationship existed between him and the tobacco companies. Justices Thomas E. Mercure, Karen K. Peters and Anthony T. Kane joined Justice Mugglin in the ruling. (Law.com)
Citigroup Australia Denies Charge of Insider Trading in Patrick Shares Mar 24, 2007
Citigroup had no fiduciary relationship with Toll and acted in the best interests of its client, said Stephen Roberts, Citigroup's head of investment banking in Australia, in a statement today. The bank's proprietary traders, who bought shares of Patrick on Citigroup's account, didn't know the bank was advising Toll on its bid for Sydney-based Patrick, he said. (Bloomberg -- Australia & New Zealand)
Ask questions before choosing financial professional Mar 20, 2007
Ask the financial professional if they have a fiduciary relationship with their clients. Someone who is a fiduciary is required by law to always act in your best interests. (Mattoon Journal-Gazette, IL)
Lawsuit focuses on affiliated companies Mar 5, 2007
" On a typical $250,000 home purchase, according to the suit, the title affiliate's fees "can be several hundred dollars more" than those of nonaffiliated competitors. Among other alleged breaches of fiduciary duty, according to the suit, the real estate broker did not "disclose that it pressures its sales associates to direct their clients' closing and title insurance business" to the affiliate. Nor did the firm disclose that it offers financial incentives to sales associates who cooperate,... (San Francisco Chronicle)
Suit alleges brokers steer buyers to pricey allies Mar 2, 2007
In the case of a broker-client relationship, fiduciary duty means that a real estate broker is bound to put a client's best interests ahead of the broker's, and must not profit from the fiduciary relationship unless the client consents. A fiduciary is also supposed to disclose material facts that may affect the client's best interests. (Sunspot.net -- Business)
Compass Partners hopes to resolve loans in 2007 Feb 23, 2007
"Compass Financial has a fiduciary relationship with these investors whereas others only have self-interest," Blatt said. The partners said they hope to resolve all 70 loans within a year. (Las Vegas Review-Journal -- Business)
LETTERS TO THE WEB EDITOR Dec 1, 2006
Learn what is meant by maintaining a fiduciary relationship with the folks that vote you into office. Talk with them more than just when you want their vote. (Tyler Morning Telegraph, TX)
When it comes to RTI, even CIC acts stingy Oct 14, 2006
The PMO has now written to Uppal using the same clause of "unwarranted invasion of privacy of individual" and has added that information to a person in his "fiduciary relationship" can be withheld unless the larger public interest warrants disclosure of such information. The PMO allowed some parts of the files to be disclosed but Uppal found that the relevant parts were omitted. (India Times, India -- Community News)
Time to probe the investing fee greed Sep 30, 2006
The root cause (apart from whopping executive salaries - see above) is that it is unclear in law whether a fiduciary relationship exists between financial advisers and their clients, as exists between lawyers and their clients or super fund trustees and members. In a fiduciary relationship, there can be no "managing" or disclosing of conflict of interests - they are simply not allowed to exist ... But Justice Brennan in the High Court in Daly v Sydney Stock Exchange Ltd (1986), said that:... (Sydney Morning Herald -- Business)
Beatles, Apple Corps Suit May Proceed Against EMI Group, Capitol Records Aug 30, 2006
EMI argued in court papers that the suit is an attempt to ``dress up a contract claim,'' and that it should be dismissed as untimely and because a fiduciary relationship no longer exists between the company and the band. Anthony Diana, a lawyer for EMI and Capitol with the law firm of Mayer Brown Rose & Maw in New York, didn't return a call seeking comment. (Bloomberg -- UK)
ASIC outlines Citigroup claims Jul 2, 2006
The US bank denied the allegation, stating in documents lodged with the Federal Court that it did not have a fiduciary relationship with client Toll Holdings. advertisement. (MSNBC)
Murder Convictions Overturned Against Ex-New York Police in Mafia Hit Case Jul 1, 2006
He said he let the trial go forward, with reservations, because the case raised ``serious doubts about the police department and its fiduciary relationship to the public. . (Bloomberg -- US)
Firm Has No Fiduciary Duty Toward Company Whose IPO It Investigated for Bank Jun 30, 2006
But the Appellate Division, 1st Department, reversed that ruling Tuesday by a three-judge majority, finding in HF Management v. Pistone, 602832/04, that no fiduciary relationship existed between Morgan Stanley and WellCare that could be extended to Epstein Becker ... " Justices Richard T. Andrias and Eugene Nardelli dissented, arguing that a fiduciary relationship did exist between Morgan Stanley and WellCare "at least to the extent that Morgan Stanley was bound to preserve from adverse use... (Law.com)
Citigroup continues to deny ASIC claims Jun 30, 2006
But CGMA told the court in a filing that it did not use its fiduciary relationship or confidential client information to trade Patrick shares. "Citigroup will continue to vigorously defend its actions in this proceeding," Mr Roberts said in a statement. (Sydney Morning Herald -- Business)
South Africa: Financial Services Board Targets 40 Pension Funds for 'Bulking' Fines Jun 21, 2006
The justification that disclosure had been made to the trustees was also no defence against this breach of a fiduciary relationship of trust, Tshidi said. He said the FSB would issue a directive to pension fund trustees, setting out the minimum requirements for the disclosure of bulking for it to be legal. (allAfrica.com)
Listing Agent Disclosure Didn't Include Marriage To Buyer, Complains Seller's Daughter Jun 15, 2006
"Under Florida law," he continues, "an agent is presumed to be working in a transaction brokerage relationship unless indicated otherwise in writing. Transaction brokerage differs from single agency in that the former has limited confidentiality and no requirement of obedience to the demands of the parties. These are legal terms for essentially saying that there is no fiduciary relationship between the agent/brokerage and the client in a transaction brokerage relationship, whereas there is one... (RealtyTimes)
Touché: bankers thrust and parry Jun 3, 2006
At the end of the day, all of us here are managing investment banking businesses that provide advice to clients, and we all have a fiduciary relationship with the client. The conflict exists for the boutiques because one advisory mandate might represent 50 per cent or 60 per cent of the profit and loss which goes straight to the bottom line of the boutique shareholders. (The Age, Australia -- Business)
Citigroup insider case heads for Aussie court May 22, 2006
"We don't have any difficulty per se with our proprietary trading. All financial institutions, however, including merchant banks, have an obligation to manage their conflicts of interest. And where the relationship exists, which is a fiduciary relationship, that is where you're acting on behalf of somebody else, your obligation to properly meet that responsibility is very high indeed," it said. D I S C L A I M E R. (Stuff.co.nz)
Do you trust your trustees? May 12, 2006
They should review this material carefully every month within five days from receipt, bearing in mind that every trustee has a fiduciary relationship to all the unit owners. " Bodies corporate, he emphasises, do have the power to safeguard members' interests and they should use it. | | | | | | Copyright 2002-2005 iafrica.com, a division of Metropolis* - a Primedia company Reproduction without permission is prohibited. All rights reserved.. (iAfrica.com)
Dogs of War -A Rejoinder Apr 29, 2006
As Ben Kumbuor is Mr Rawlings lawyer, Mr Kwamenas assertion that the latter is using the former makes it the first time, at least so far as I know, that in the fiduciary relationship between the lawyer and the client it is the client who is exercising undue influence on the lawyer and not vice versa which is preposterous at best. If Mr Kwamena wants to know who has been used it is the rubber-stamp NPP parliamentarians, some of them too dumb to understand the intricacies of legislation, who... (Ghana Web, Ghana)
ASIC rejects Citi's defence Apr 10, 2006
"Where the relationship exists, which is a fiduciary relationship, that is where you're acting on behalf of somebody else, your obligation to properly meet that responsibility is very high indeed," he said. "Now if you don't meet that obligation, then in our view, you break the law.". (Sydney Morning Herald)
