Capital protected products targeted
So-called ‘capital protected’ products appear to be in the crosshairs of legal firms looking to represent investors.
With much of the past year having been dominated by litigation relating to failed agricultural managed investment schemes, at least one Sydney-based law firm is now canvassing for retail investors who have incurred losses from capital protected products.
The advertising specifically refers to disclosure relating to the promotion of the capital protected products, a number of which were launched in relation to the global financial crisis.
The emergence of possible legal action around the capital protected products follows on from the Australian Securities and Investments Commission earlier this year reviewing the area and issuing a new regulatory guide.
The new regulatory guide clearly stipulates that “industry participants should not assume that consumers understand the risks involved in complex product offerings”.
AUTHOR
Mike Taylor
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