ASIC warns investors: swim between the flags
Taking precautions with investments is like “swimming between the flags”, according to the Australian Securities and Investments Commission's (ASIC) South Australian commissioner, Mark Bielecki.
ASIC is urging investors to take a few simple precautions and to be mindful that high returns come with higher risk.
Improving financial literacy and facilitating investor education is a key focus for ASIC, Bielecki said.
Bielecki said tough and uncertain economic times often make people more susceptible to illegal schemes and scams and, therefore, advised that it is important to deal with a licensed financial services business.
“Few if any of Australia’s home-grown illegal investment schemes are managed by a licensed business.
“By choosing to ignore the flags, you run the risk of paying a staggering price,” Bielecki said.
However, according to an ASIC statement, 80 per cent of Australians do not access professional financial advice.
This month, ASIC’s South Australian office will hold a statewide road show raising awareness of ASIC’s role in protecting and educating retail investors.
ASIC is aiming to assist investors in understanding concepts such as diversification and asset allocation.
Recommended for you
Net cash flow on AMP’s platforms saw a substantial jump in the last quarter to $740 million, while its new digital advice offering boosted flows to superannuation and investment.
Insignia Financial has provided an update on the status of its private equity bidders as an initial six-week due diligence period comes to an end.
A judge has detailed how individuals lent as much as $1.1 million each to former financial adviser Anthony Del Vecchio, only learning when they contacted his employer that nothing had ever been invested.
Having rejected the possibility of an IPO, Mason Stevens’ CEO details why the wealth platform went down the PE route and how it intends to accelerate its growth ambitions in financial advice.
