Understanding “Efficient, Honest and Fair” as Performance-Based Regulation

Authors

• Lauren Willis, Loyola Law School Los Angeles
• Jeannie Marie Paterson, University of Melbourne - Law School
• Nicola J. Howell, Queensland University of Technology
• Evgenia Bourova, University of Melbourne - Law School

Document Type

Article

Publication Date

9-4-2026

Citation / Publisher Attribution

36 J. BANKING & FIN. L. & PRAC. 97 (FORTHCOMING 2026) 

Abstract

Financial services and credit provider licensees have a duty to “do all things necessary” to ensure the financial services covered by the licence “are provided efficiently, honestly and fairly”. The character and content of the duty remain elusive, despite case law. We suggest its application should focus on the performance standard of efficiency, honesty and fairness. Doing all things necessary to meet this standard is a demanding and dynamic “performance-based” duty that goes beyond reasonable care. The forward-looking nature of the duty requires licensees routinely to review their performance and make revisions as needed to ensure the standard is being met. While the duty does not “demand perfection”, the focus must remain on whether the financial services in question are provided at the demanded standard of “efficiently, honestly and fairly”.

Recommended Citation

Willis, Lauren; Paterson, Jeannie Marie; Howell, Nicola J.; and Bourova, Evgenia, "Understanding “Efficient, Honest and Fair” as Performance-Based Regulation" (2026). Law Faculty Research and Publications. 5.
https://digitalcommons.lmu.edu/law_faculty_pub/5