MDA operator fined for misleading advertising
Synergy Financial Markets had paid a penalty of $10,800 after the Australian Securities and Investments Commission (ASIC) issued it with an infringement notice for false or misleading statements on its website.
The firm trades equities and derivatives on behalf of its clients through the operation of two managed discretionary accounts.
Synergy mentioned several times on its website that investors who invested in its managed discretionary accounts would only pay Synergy “when your account profits”.
ASIC said these statements were misleading because regardless of whether an investment in one of its managed discretionary accounts profits.
Synergy charges investors:
- In one of its managed discretionary accounts an annual management fee of two per cent of an investor’s balance; and
- Brokerage fees and commissions in both of its managed discretionary accounts.
Synergy has removed the statements from its website. The payment of an infringement notice is not an admission of a contravention of the ASIC Act consumer protection provisions. ASIC can issue a notice where it has reasonable grounds to believe the person or firm has contravened certain consumer protection laws.
AUTHOR
Malavika Santhebennur
Recommended for you
The $673 billion global investment manager has appointed a former Zenith sales head as it seeks to expand its reach in the Australian wealth management market.
Fund managers may be operating in a squeezed environment, but a salary guide shows they are willing to pay up for specialist talent to diversify their fund range.
Reach Alternative Investments has entered into a strategic partnership with Russell Investments to bolster its wholesale private markets offering for financial advisers and investors.
Boutique investment consulting and research house Genium Investment Partners has announced a senior appointment to drive further growth in its research ratings business.
