Powered by momentummedia
nestegg logo
nestegg logo

Retirement

ASIC seeking out 'misleading' marketing by managed funds

  • March 23 2022
  • Share

Retirement

ASIC seeking out 'misleading' marketing by managed funds

By Neil Griffiths
March 23 2022

The corporate regulator has commenced a surveillance into the marketing of managed funds.

asic seeking out misleading marketing by managed funds

ASIC seeking out 'misleading' marketing by managed funds

author image
  • March 23 2022
  • Share

The corporate regulator has commenced a surveillance into the marketing of managed funds.

asic seeking out misleading marketing by managed funds

On Wednesday, 23 March, ASIC said it is seeking out “misleading performance and risk representations” in promotional material, including search engine advertising, targeting retail investors and possibly “unsophisticated” wholesale investors.

ASIC said its surveillance comes due to concerns that consumers seeking reliable or high returns are being misled about the performance and risks of funds they are investing in.

“ASIC remains concerned that managed fund promoters continue to target consumers, particularly retirees or those planning for retirement, with ambiguous or misleading performance and risk representations,” ASIC deputy chair Karen Chester said.

Advertisement
Advertisement

“Where we identify fund marketing of concern, we will also review the corresponding product disclosure statements, websites and target market determinations to assess if the marketing claims are misleading.”

The regulator has previously taken action against fund managers for misleading marketing or advertising, including Mayfair 101 who was ordered to pay a combined penalty of $30 million last year.

La Trobe Financial Asset Management was also hit with a $750,000 fine in November for the same accusations.

“ASIC is committed to protecting consumers where misleading marketing practices run counter to their interests,” Ms Chester said.

“If we identify misleading conduct, we will take prompt action to disrupt behaviours by deploying across our regulatory tools – from administrative intervention through to enforcement action if warranted.”

ASIC seeking out 'misleading' marketing by managed funds
nestegg logo

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates
Rate the article

more on this topic

more on this topic

More articles

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.