ASIC warns investors: swim between the flags
Taking precautions with investments is like “swimming between the flags”, according to the Australian Securities and Investments Commission's (ASIC) South Australian commissioner, Mark Bielecki.
ASIC is urging investors to take a few simple precautions and to be mindful that high returns come with higher risk.
Improving financial literacy and facilitating investor education is a key focus for ASIC, Bielecki said.
Bielecki said tough and uncertain economic times often make people more susceptible to illegal schemes and scams and, therefore, advised that it is important to deal with a licensed financial services business.
“Few if any of Australia’s home-grown illegal investment schemes are managed by a licensed business.
“By choosing to ignore the flags, you run the risk of paying a staggering price,” Bielecki said.
However, according to an ASIC statement, 80 per cent of Australians do not access professional financial advice.
This month, ASIC’s South Australian office will hold a statewide road show raising awareness of ASIC’s role in protecting and educating retail investors.
ASIC is aiming to assist investors in understanding concepts such as diversification and asset allocation.
Recommended for you
The central bank has released its decision on the official cash rate following its November monetary policy meeting.
Melbourne advice firm Hewison Private Wealth has marked four decades of service after making its start in 1985 as a “truly independent advice business” in a largely product-led market.
HLB Mann Judd Perth has announced its acquisition of a WA business advisory firm, growing its presence in the region, along with 10 appointments across the firm’s national network.
Unregistered managed investment scheme operator Chris Marco has been sentenced after being found guilty of 43 fraud charges, receiving the highest sentence imposed by an Australian court regarding an ASIC criminal investigation.
