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
Grant Hackett has been promoted from CEO of Generation Life to head up the wider Generation Development Group.
Tribeca Investment Partners has made a distribution hire from Australian Ethical in a newly-created role focused on the national intermediary market.
Asset managers may be urged to diversify their product ranges, but investment executives have warned any M&A deal should avoid simply filling gaps and instead consider long-term value creation.
Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equity firm.
