ASIC pips wealth scheme at the post
A wealth creation scheme that claims to be able to generate returns of at least 2 per cent every trading day is being investigated by the Australian Securities and Investments Commission (ASIC).
The corporate watchdog said yesterday it had begun inquiries into the People in Profit System - or PIPS - scheme after receiving complaints in recent weeks.
The scheme, which is believed to be operated from overseas, is understood to have recently become active in Australia, ASIC said. It is promoted over the internet and in face to face meetings arranged by local agents.
According to ASIC, the PIPS website states at least 2 per cent every trading day can be earned from one particular wealth creation option.
“That’s more than 14,000 per cent each year if compounded daily over 252 trading days. At that rate, if you put in $1,000, you would have $21,601,632 in just two years,” ASIC said in a statement.
ASIC executive director of consumer protection Greg Tanzer urged anyone with information about the scheme’s promoters in Australian to contact the regulator.
“As result of public inquiries and complaints, ASIC has already begun inquiries into this scheme, and we invite anyone who has information about its Australian promoters to come forward and assist us,” he said.
Recommended for you
With Insignia Financial suffering a cyber attack on its Expand platform, this can potentially have a negative impact on the two private equity bids currently in play for the firm.
State Street Global Advisors has made an equity investment in Ethic, a platform helping financial advisers to produce bespoke portfolios, reflecting the greater client demand for customised portfolios.
WT Financial’s new entity with Merchant, Investco, has entered into a heads of agreement to merge three financial advice firms.
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
