SMSF Property Capital has paid a $10,200 penalty to comply with an infringement notice from the corporate regulator, after making potentially misleading statements about ASIC-approved financial products.
“ASIC takes the misuse of language such as ‘ASIC endorsed’ or ‘ASIC approved’ very seriously, especially in the area of SMSFs,” said ASIC deputy chairman Peter Kell.
“Creating a false impression of the level of regulatory approval for investments can lead to consumers making poor decisions.”
Mr Kell said this should be a warning to anyone advertising financial products, saying it is “crucial” that consumers are not misled about the level of risk associated with any investment.
However, SMSF Property Capital had acted quickly to remove the statements from its website once approached by ASIC, Mr Kell added.
ASIC stated that SMSF Property Capital’s payment of the infringement notice penalty is not taken as an admission of liability or a contravention of the consumer protection provisions of the Australian Securities and Investments Commission Act 2001.
If the $10k infringement penalty should not be “taken as an admission of liability”, then what was it? A donation to ASIC’s staff Christmas fund, perhaps?
Come on ASIC!