Earlier this month, Consumer Affairs announced that it had accepted an enforceable undertaking from Melbourne-based Accrue Property.
Consumer Affairs found that Accrue made several false or misleading statements on its website.
One of these claims was that the company could show investors how to use their super funds to “earn an outstanding return, regardless of market conditions or whether capital growth occurs”.
It also claimed the Accrue Landbanking system could turn an investor’s super fund into a “goldmine – to purchase an appreciating asset, without taking a cent out of your own pocket”.
Accrue must now advise current or prospective customers that “no return is ever guaranteed” in relation to investing in property and investing through an SMSF.
The company has also agreed to remove all false or misleading claims from its website and to submit to a two-year compliance program to ensure all company statements comply with Australian Consumer Law.
Accrue has also agreed to pay $5,000 to the Victorian Consumer Law Fund.
Yes, and I’m sure the $5,000 fine is going to deter further incidents. How is that a fine? Speeding fines are almost larger, this is a corporation advertising intentional falsehoods to make money. The fine should reflect the profit they derived from making the false claims. As Damian mentioned, an individual Financial Planner would lose their entire livelihood. Yet a corporation gets fined the equivalent of lunch money! Why?
Where is ASIC!!!
Damian makes a valid point. The scrutiny appears aimed more to the Financial Planning Industry and as such, is it not therefore probable that operators outside of this Industry participating in non-compliant activity being overlooked due to unequal focus?
And if a Financial Planner made such statements we would be banned. These people need to be subject to the same standards as the Financial Planning Industry.
‘Accrue has also agreed to pay $5,000 to the Victorian Consumer Law Fund.’
WOW!