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 Sep 2018Independent advice will prosper but must be paid for: LovedayBy James Mitchell
- 21 Sep 2018Former ASFA policy advisor to boost FPA ranksBy Reporter
- 21 Sep 2018Aligned advisers in search of freedomBy Adrian Flores
- 20 Sep 2018Banned Perth adviser did not engage in dishonest conductBy James Mitchell
- 20 Sep 2018‘No advisers have been mistreated’: DalyBy James Mitchell
- 20 Sep 2018Beacon advisers held ‘ransom’ while IIOF money remains missingBy James Mitchell
- view all