Findex Group Limited and Financial Index Australia (FIA) have each paid a $10,800 penalty for “potentially misleading claims” on the Findex website after the Australian Securities and Investments Commission (ASIC) had issued the infringement notices.
FIA, which is part of the Findex group of companies, published in 2015 several representations on the Findex website referring to services provided by the Findex group as being ‘independent’ and/or ‘non-aligned’, ASIC said.
The regulator was concerned the use of word ‘independent’ and ‘non-aligned’ may have led consumers to believe services being offered by the Findex Group were unaffected by any conflict of interest, such as commissions, when in fact the services offered were likely to have been affected by:
- Commissions or other benefits received from the issuer of recommended financial products; and
- Conflicts of interest arising out of the group’s associations or relationships with issuers of financial products.
These inaccurate representations of independence by the Findex Group may have misled consumers and hindered the correct assessment of the quality of the services on offer.
ASIC issued an infringement notice to Findex Group for making the statements on behalf of the Findex Group and a separate one to FIA as the registered owner of the Findex website.
The Findex group of companies include Findex Group Limited and FIA, and according to the Findex website, they advised 250,000 clients while having $17 billion in funds under advice.
ASIC deputy chair, Peter Kell, said: “The accurate promotion of financial services, particularly around the issue of independence, is critical in order for consumers to make confident and informed financial decisions”.
“This action puts the financial service sector on notice that ASIC is serious about tackling the inappropriate use of the term ‘independent’.”
Findex Group Limited and FIA responded to ASIC’s concerns by removing the offending statements from the website by December 2015.
