Double gearing promotion leads to firm’s licence suspension
The Australian Securities and Investments Commission (ASIC) has suspended the licence of Finance Technology Securities (FTS) after concerns it was inappropriately recommending double gearing strategies.
After keeping an eye on the Brisbane-based firm, ASIC discovered it had a policy of advocating the potentially risky strategies to some clients up until August 2012, regardless of their circumstances.
ASIC stressed double gearing, which involves people borrowing against the equity their home, is only appropriate for a select group of clients and should not be widely advocated.
FST, who have since ceased the practice, have had their licence suspended for six weeks.
Recommended for you
The month of April enjoyed four back-to-back weeks of growth in financial adviser numbers, with this past week seeing a net rise of five.
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With the election taking place on Saturday (3 May), Adviser Ratings examines how the two major parties could shape the advice industry in the future.
