ASIC continues clamp-down on ‘independent claims’
The Australian Securities and Investments Commission (ASIC) has warned it will continue to publicly name advisers and advice firms which inappropriately use the restricted term “independent”.
The regulator announced it was continuing to monitor the financial advice industry’s use of restricted terms ‘independent’ and ‘independently owned’ and taking steps to intervene when it identified concerns.
It said that following surveillance of industry websites, ASIC had required four financial advice companies to cease and amend false claims of independence that could mislead consumers.
It said the claims were made on websites, and in some instances, in the marketing material of:
- Financial Spectrum Pty Ltd (authorised representative of Spectrum Wealth Advisers Pty Ltd);
- Mr James Gerrard (authorised representative of Australian Financial Advisory Group Pty Ltd);
- PWK Private Wealth Advisers Pty Ltd (authorised representative of Paragem Pty Ltd); and
- Debbie Hudson Financial Services Pty Ltd (trading as Wealth Fusion) (authorised representative of Paragem Pty Ltd).
“ASIC will continue to publicly name advisers who do not comply with their obligations under s923A and, where appropriate, take action to enforce the obligations in s923A and to ensure consumers are not misled about the nature of the service they are receiving,” the ASIC announcement said.
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