The corporate regulator has raised the issue of misleading product disclosure statements, placing interim stop orders on two schemes.
In a statement released today, ASIC announced it had placed stop orders on the product disclosure statements and associated advertising for Trilogy Monthly Income Fund and Trilogy Melbourne Office Syndicate, Cheltenham – of which Trilogy Funds Management Limited is the responsible entity.
According to the statement “ASICs concerns relate to, among other things: the use of headline rates of return; comparisons of the schemes to other financial products without disclosing the differences between these products; failure to address benchmark disclosures or meet disclosure principle information standards as outlined in relevant ASIC regulatory guides; use of ratings statements without providing adequate details about the meaning of the rating or where investors could obtain further details of the rating; and clear concise and effective disclosure of the structure and nature of the product being offered”.
ASIC commissioner Greg Tanzer said:
“‘It is important that disclosure documents and advertisements are clear, accurate and balanced, and when comparing products in an ad, the products should be similar enough to make the comparison relevant and not misleading.
“This is especially the case when consumers are looking for lower risk products and/or higher yields in an uncertain global financial environment.”
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 20 Jul 2018CPA shuts financial advice divisionBy Reporter
- 20 Jul 2018Don't neglect AI, advisers warnedBy Tim Stewart
- 19 Jul 2018AMP unveils new in-house training programBy Reporter
- 19 Jul 2018Self-licensed adviser cops 4-year ASIC banBy Reporter
- 19 Jul 2018Hub24 to launch new core offeringBy Reporter
- 19 Jul 2018SMSF sector warns about advice ‘exodus’By Miranda Brownlee
- view all