ASIC commences action against Sydney mortgage broker
The Australian Securities and Investments Commission (ASIC) has commenced proceedings in the Federal Court against a Sydney mortgage broker and its sole director following concerns over potentially misleading or deceptive statements regarding mortgage calculator, EquityExcel Plan.
ASIC alleges that Whyte Corporation and Gavin Whyte have contravened the ASIC Act by representing that the EquityExcel Plan allows borrowers to pay off their mortgage sooner and make substantial savings with no increase in their monthly payments or changes in their lifestyle.
The watchdog alleges that this representation is misleading, or likely to mislead, as a borrower can only pay off their mortgage sooner or make substantial savings using the EquityExcel Plan if they make considerable additional repayments over and above their minimum monthly repayments.
ASIC is seeking declarations that Whyte Corporation and Whyte contravened the ASIC Act and orders restraining them from continuing to make the representations.
The matter returns to the Federal Court on March 11, 2009.
Recommended for you
The new financial year has got off to a strong start in adviser gains, helped by new entrants, after heavy losses sustained in June.
Michael McCorry, chief investment officer at BlackRock Australia, has detailed how investors are reconsidering their 60/40 portfolios as macro uncertainty highlight the benefits of liquid alternatives.
Having reset its market focus to high-net-worth advisers, Praemium’s administration solution has been selected by Bell Potter in a deal that increases the platform's funds under administration by $6 billion.
High transition rates from financial advisers have helped Netwealth’s funds under administration rise by $3.7 billion in the fourth quarter of FY25.