Trilogy Funds Management Limited is the responsible entity of both schemes.
ASIC Commissioner Greg Tanzer said that disclosure documents and advertisements that do not accurately represent a financial product or its key features and risks, can create unrealistic expectations and lead to poor financial decisions.
‘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,’ Mr Tanzer said.
‘This is especially the case when consumers are looking for lower risk products and/or higher yields in an uncertain global financial environment.’
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.