Wealth Within incurs ASIC penalty over advertising
The Australian Securities and Investments Commission (ASIC) has moved against another financial services company for misleading advertising, with Wealth Within Limited having been required to pay $20,400 in penalties after the regulator issued two infringement notices for misleading online advertisements.
According to an ASIC statement, the advertisements related to the investment returns of Wealth Within's individually managed account service, known as the Direct Equity Managed Account Service.
The announcement said ASIC was concerned that one advertisement, which ran online from 30 June 2011 to 5 March 2013, overstated the true returns for the portfolios advertised.
It said that in a second advertisement which ran from 5 March 2013 to 17 October 2013, ASIC was concerned the advertisement misled investors into believing they would achieve returns on their individually managed account the same as — or similar to — the returns advertised. ASIC found that, due to the nature of the service, each investor's account would differ from the performance advertised.
Commenting on the action, ASIC deputy chairman Peter Kell said consumers made important financial decisions based on the advertisements they see, read or hear, making it vital that organisations promote their product in a way that is not misleading in any way.
"ASIC will continue to monitor all forms of advertising to ensure consumers can make informed decisions," he said.
The announcement of the ASIC move against Wealth Within Limited has come weeks after ASIC commissioner, Greg Tanzer, told a Senate Committee the regulator was actively scrutinising recent television advertising by industry superannuation funds.
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