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.
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