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The FOS Approach to Misleading Conduct

Misleading conduct is conduct that leads, or is likely to lead, a person into error. It is prohibited by Australian law.

It can occur through statements, acts, omissions or silence, even if there is no intention to mislead.

When assessing disputes about misleading conduct, FOS will:

  • ask applicants and FSPs to supply relevant information
  • consider all the available information to conclude what is most likely to have happened
  • do what, in our opinion, is fair in all the circumstances, bearing in mind legal principles.

If FOS finds that an FSP has engaged in misleading conduct, the remedy is not to make the misrepresentation come true. Rather, FOS will compensate an applicant for any loss which they have suffered by relying on the misrepresentation. FOS may reduce the amount of any compensation if we believe an applicant did not take reasonable care to protect their own interests.