Kovacs Property fined by ASIC
Kovacs Property Group has paid $10,800 in penalties for potentially misleading online advertisements in response to an infringement notice issued by the Australian Securities and Investments Commission (ASIC).
The statements were published over late 2015 and early 2016 on www.positivefuture.com.au, a website used in the promotion of the Investment Samaritan Offer, an investment offered within the Guardian Investment Fund.
ASIC expressed concerns that the advertisements might lead to a belief that the investment was safe in terms of the return of capital without providing a proper explanation of its key risks. In particular, the website did not explain that the funds invested were loaned to Investment Samaritan Pty Ltd, or of the risk that this company could default on the loan.
Investment Samaritan is reliant on a US-based companies sourcing distressed US credit card issuers and collecting card debts from US-based consumers in order to meet its obligations to investors under the loan.
ASIC commissioner, Greg Tanzer, stressed that the advertisements of the financial products should give a clear message about all the risks associated with a given product.
"Advertisements for financial products and credit products should give a balanced message about the returns, features, benefits and risks associated with a product,"
"ASIC will take action to address misleading or inaccurate advertising of investment opportunities to ensure investors are informed in their decision-making," he said.
ASIC noted that Kovacs had revised the website and was co-operating to address all the concerns.
Also, the payment of an infringement notice is not an admission of a contravention of the ASIC Act consumer protection provisions.
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