ASIC acts on dodgy websites
The Australian Securities and Investments Commission (ASIC) has shut down four websites claiming to offer online financial services because they provide misleading information about their businesses and other misconduct.
ASIC’s action since late 2010 also resulted in the cancellation of the Australian Financial Services Licence (AFSL) for one firm and the winding up of another.
Firms involved were AC Trading Co Pty Ltd, Macro Dealing Advisory Pty Ltd, Hedge Securities and Investments Pty Ltd and Guardian Wealth.
AC Trading passed itself off as US-based and invited individuals to open and deposit funds into an account for the purpose of buying and selling foreign exchange contracts and shares. ASIC shut down its online operations in December 2010 and a liquidator was appointed this week.
Macro’s website was closed down after complaints from two China-based investors relating to its online trading facility.
Hedge Securities and Investments, which conducted Australian share and commodity trading, had its AFSL cancelled after the regulator became aware of the company falsely stating on its website that it was a member of the Financial Industry Complaints scheme. Hedge’s website contained links to an information memorandum on an associated website that also included a number of false claims.
ASIC received around 20 complaints relating to the Guardian website, which is based in the US but falsely claims to be based in Australia and quotes a false AFSL number. ASIC is working with US regulators to have the site closed down, ASIC stated.
AUTHOR
Milana Pokrajac
Recommended for you
Following an extraordinary general meeting today, Dixon Advisory parent company E&P Financial Group’s shareholders have voted on its proposed delisting from the ASX.
While overall financial adviser numbers have dipped below 15,500 this week, Rhombus Advisory is experiencing growth and approaching 500 advisers in its ranks.
Iress’ Xplan continues to dominate the financial planning software market with a multitude of uses, according to Netwealth research, despite newer players battling for a piece of the pie.
ASIC has shared the percentage of breach reports related to financial advice in FY24, noting increased reporting by smaller AFSLs.
