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
Recommended for you
Despite the year almost at an end, advisers have been considerably active in licensee switching this week while the profession has reported a slight uptick in numbers.
AMP has agreed in principle to settle an advice and insurance class action that commenced in 2020 related to historic commission payment activity.
BT has kicked off its second annual Career Pathways Program in partnership with Striver, almost doubling its intake from the inaugural program last year.
Kaplan has launched a six-week intensive program to start in January, targeting advisers who are unlikely to meet the education deadline but intend to return to the profession once they do.
