Seven MIS REs cease advertising after ASIC intervention
Seven responsible entities for managed investment schemes (MIS) have ceased advertising as the result of a review conducted by the Australian Securities and Investments Commission (ASIC).
The regulator announced that it had put the responsible entities of all MISs on notice that they had to ensure that their investment fund advertising provided clear, balanced and accurate information.
The regulator’s action followed a risk-based surveillance of advertising material, website disclosure and product disclosure statement from managed funds during the COVID-19 pandemic leading to ASIC saying it was concerned to find some funds were providing inadequate information or were not accurately and clearly presenting key features of their investment products.
Commenting on the findings, ASIC deputy chair, Karen Chester said the regulator had directly raised concerns with seven Res about their advertising and disclosure in relation to 13 investment funds.
“Collectively, these funds have approximately $2.5 billion in funds under management,” she said.
Chester said the seven REs had:
- ceased advertising of funds and reviewed advertising content;
- ceased issuing interests in funds until ASIC’s concerns are addressed;
- withdrawn and replaced product disclosure statements;
- provided more balanced and prominent disclosure of investment risks and disclaimers;
- clarified actual withdrawal terms
- stopped comparing funds to other (lower risk) products on webpages.
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