Australian Corporate Bond Co pays up for misleading statements
Australian Corporate Bond Company (ACBC) has been fined $25,200 after an investigation by the Australian Securities and Investments Commission (ASIC) found it had made misleading promotional statements on its website in 2017.
Following an investigation, ASIC was concerned ACBC’s comparison of the key attributes of term deposits and exchange-traded bonds (XTBs) represented an investment in the latter as carrying an equivalent or substantially the same risk as investments in the former, while producing a higher return.
The corporate regulator was concerned the statements were misleading because the risk involved in an investment in XTBs was not equivalent to, or substantially the same as, that in term deposits.
ACBC amended the statements in response to ASIC’s concerns.
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