ASIC warning on foreign products
Wednesday, October 17, 2007/
The Australian Securities and Investments Commission has warned investors about investing in non-compliant offshore financial products, following advertisements by a New Zealand company, Asset Finance Ltd, offering debenture stocks with returns in the range of 9.75% to 12% a year.
Investors were directed to a New Zealand website and a New Zealand prospectus, but a prospectus was not lodged with ASIC and did not, therefore, comply with Australian disclosure requirements.
“Australian investors should take extreme care before investing overseas as they may not be protected by Australian law,” ASIC’s executive director, consumer protection, Greg Tanzer says.
“If you take up an offer of securities from an overseas entity that has not complied with Australian law or deal directly with an overseas broker, you may lose the protections provided by Australian law.”
Asset Finance has undertaken to stop advertising that does not comply with Australian regulations. ASIC says no funds were actually raised in Australia.
Under Australian law, every business that gives investment advice must be licensed by ASIC and companies that offer shares or other securities to the public must issue a prospectus and lodge a copy with ASIC.
Social media mishaps: Why businesses should think twice before cracking jokes online Catriona Pollard CP Communications founder
An ‘opportunity-hunting’ generation: Here's what millennial workers need and want Karen Gately Corporate Dojo founder
Spilling the beans: Why inviting someone to 'grab a coffee' is disingenuous and unnecessary Sue Parker DARE Group founder
Why success is simple, motivational speakers suck and Eye of The Tiger is dead to me Ian Whitworth Scene Change co-founder
How Emily McWaters manages her Sydney-based business from Kangaroo Island Emily McWaters The Hamper Emporium chief
Why 'Orwellian' performance monitoring is crucial to building an ethical company culture Michael Kodari Kodari Securities chief