ASIC warns about fake financial advice group
The Australian Securities and Investments Commission (ASIC) has urged investors to avoid Connaught Investment Group, an unlicensed business claiming to be a financial services group based in Sydney.
Connaught representatives are cold-calling potential customers and asking them to transfer funds into a bank account in the name of Diversified Strategies Pty Ltd, while claiming to offer general advice on various financial products.
Investors are then issued with a password for www.connaughtfinancialplanning.com.au, which enables them to check the fictional status of their investment, the ASIC investigation has revealed.
The regulator warned that Connaught was not registered as an Australian company and that its representatives had been quoting the Australian Financial Services Licence and company number of a legitimately registered business.
ASIC found the address listed for both Connaught Investment Group and Diversified Strategies is an unrelated dance studio in the Sydney suburb of St Leonards, while calls to their various phone numbers are no longer answered.
Commissioner Greg Tanzer said investors need to be cautious when being offered unsolicited investment advice.
"Making a few basic checks on your investment before you sign away your hard-earned money is critical," Tanzer said. "I strongly urge potential investors to scrutinise all investment opportunities closely and seek professional, licensed advice before making investment decisions."
The alert follows a similar one issued last month about Dellingworth Pty Ltd - another unlicensed financial services business.
Earlier this year, unlicensed financial planning business Goldsparrow Pty Ltd was wound up after a large crackdown on investment fraud by the Australian Federal Police in December 2011.
AUTHOR
Staff Writer
Recommended for you
With the highest number of candidates in a year sitting the latest financial advice exam, a surge of new entrants are expected in the coming weeks, according to Wealth Data.
AMP has launched a range of five diversified index managed portfolios on its North investment platform, targeting a younger client demographic.
An NSW adviser, who advised over 120 clients after falsifying her financial advice exam results, has been permanently banned by ASIC.
ASIC has released the results from the latest financial adviser exam, the first to be run since changes to its structure earlier this year.
