ASIC warns on software
There is no computer software that can make you ‘get rich quick’, so don’t be fooled by sales hype and inflated claims, says Director of the Australian Securities and Investments Commission’s (ASIC) Office of Consumer Protection, Peter Kell.
There is no computer software that can make you ‘get rich quick’, so don’t be fooled by sales hype and inflated claims, says Director of the Australian Securities and Investments Commission’s (ASIC) Office of Consumer Protection, Peter Kell.
Kell made his comments following the launch of ASIC’s ‘consumer alert’ program which warns people of the risks involved in computer share trading software.
The consumer alert also warned industry providers of the software that they must comply with the Corporations Law.
“Be particularly careful about ‘black box’ systems, which provide trading advice or recommendations in addition to providing purely factual information about securi-ties,” Kell says.
According to Kell, some of the programs sell for thousands of dollars, so it is wise for consumers to question whether they are getting value for money.
“You can’t tell how this advice is generated, and whether the risks taken by the system are risks you would take yourself.. You might end up losing money on an investment decision you wouldn’t usually consider,” he says.
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