MDA operator fined for misleading advertising
Synergy Financial Markets had paid a penalty of $10,800 after the Australian Securities and Investments Commission (ASIC) issued it with an infringement notice for false or misleading statements on its website.
The firm trades equities and derivatives on behalf of its clients through the operation of two managed discretionary accounts.
Synergy mentioned several times on its website that investors who invested in its managed discretionary accounts would only pay Synergy “when your account profits”.
ASIC said these statements were misleading because regardless of whether an investment in one of its managed discretionary accounts profits.
Synergy charges investors:
- In one of its managed discretionary accounts an annual management fee of two per cent of an investor’s balance; and
- Brokerage fees and commissions in both of its managed discretionary accounts.
Synergy has removed the statements from its website. The payment of an infringement notice is not an admission of a contravention of the ASIC Act consumer protection provisions. ASIC can issue a notice where it has reasonable grounds to believe the person or firm has contravened certain consumer protection laws.
Recommended for you
There is one specific risk that is a significantly higher concern for financial services directors compared to companies overall and is impacting their risk appetite, according to the AICD.
Global fund managers are shunning bonds, with the asset class seeing the largest drop in allocations in more than 20 years.
Australian Ethical has seen its funds under management reach $10 billion, driven by organic customer growth and superannuation contributions.
Financial advisers will have access to private equity investments run by WTW for the first time as it launches a pooled fund to provide savers with access to traditionally institutional assets.
