Westpac forced to drop ‘stress-free’ investments
02/12/2011
The Australian Securities and Investments Commission has rapped Westpac over the knuckles for publishing a guide to geared equity investment titled: "Stress-free Strategies to Accelerate Your Wealth".
The regulator's view was that it was inappropriate to describe geared investment strategies as "stress-free". In a media release issued yesterday, ASIC said Westpac had agreed to stop using the term in its marketing and to review its marketing of geared products.
ASIC commissioner Peter Kell said: "Given recent market volatility, we have been particularly concerned that advertising does not lead consumers to put their money into products that are inappropriate." Kell would not be drawn on whether he thought Westpac would be liable if an investor lost money after following the advice in the "stress-free" gearing guide.
Source: Banking Day
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