Get ASX Price

 


  Latest Planning News
Hot Issues
Our 2021 Advent Calendar.
State and Federal COVID-19 support
Rising life expectancies and retirement
Asian Economies (1960 - 2020)
Australians planning to work longer to achieve retirement satisfaction: Fidelity
The real impact of investment choices
A savings strategy for children's education
Inflation expectations hit 7-year high
Why more Millennials are turning to SMSFs
ASIC releases new guidance on crypto investment products
Planning your financial legacy
New FAR regime and CSLR changes before Parliament
Three behavioural factors that can affect retirement spending
World's most productive countries
SMSFs flagged on updates to contribution measures in upcoming super bill
The dos and dont's of revenge spending
ATO extends COVID-19 relief for SMSFs
Three ways to keep market uncertainty in perspective
SMSFs, employee share schemes & NALI
Low interest rates require a strategic rethink
Greenhouse gas emission by country since 1880
SMSFs can face situational traps affecting related-party transactions with former spouse
The right way to rebalance your investment portfolio
Lockdowns and mental health
The rise of the female investor
ATO flags availability of COVID-19 early release super recontribution
World's largest armies 1816 - 2020
Retirement can be risky business
A proven way to build wealth
Two AAT decisions on what constitutes business real property
Articles archive
Quarter 3 July - September 2021
Quarter 2 April - June 2021
Quarter 1 January - March 2021
Quarter 4 October - December 2020
Quarter 3 July - September 2020
Quarter 1 of 2021
Articles
ATO’s good-faith approach to crypto won’t last much longer
Navigating the post-pandemic challenges and pathways of super for young women
ATO Small Business Newsroom
Cost of retirement up in December quarter
Why benchmarking will be good for super funds
What exactly is inflation?
The risks in hunting for higher returns
Frydenberg flags super freeze
The real value of advice
Taking a deeper dive into indexation of the transfer balance cap
ASIC sounds warning around high-yield bond scams
How to pass the diversification test
Rollout of Director ID Numbers (DIN) is ahead of schedule
The perks of staying invested
Retirees proceeding with downsizing plans as confidence rises
Early access boosted interest in advice
Vaccination rates as they happen around the world
Approaching the dawn
Videos and other resources for our clients
Retirement the ‘number one trigger’ for financial advice
‘Unfinished superannuation business’ to watch for in 2021
Superannuation ideas for 2021
Retirees need new super investment approach
Returning expats reminded on tax snares with pensions, investments
ASIC sounds warning around high-yield bond scams

 

The corporate regulator has warned of a rise in scammers targeting Australian investors by pretending to be associated with well-known domestic and international financial service firms.

 



       


The high-yield bond scams usually occur after an investor completes an online enquiry form expressing interest in receiving investment advice, often via a third party or comparison site.


Scammers pretend to be associated with well-known domestic and international financial service firms and send professional-looking fake prospectuses with unrealistically high returns.


ASIC also notes that other common tactics include falsely claiming investor funds will be pooled to invest in government bonds or the bonds of companies with AAA credit ratings, and falsely claiming the purchase price of the bonds is protected under the Commonwealth Governments Financial Claims Scheme.


ASIC acting chair Karen Chester has urged investors to be wary of claims that are “too good to be true”, noting that money lost to such scams are hard to retrieve, especially if scammers are based outside Australia.


“Interest rates globally are currently extremely low and expected to remain so for some time. If you see or receive offers of high-yield bonds, they are either high-risk or they may simply be bogus and a scam,” Ms Chester said.


“Investors searching for income-generating investments are at risk of being duped into buying these imposter bonds. Any prospectus offering incredible returns in today’s economic environment is likely to be just that: incredible.


“ASIC warns investors to be sceptical and make proper inquiries before investing.”


Ms Chester has also urged Australian investors to be careful with sharing their personal information online.


“We remind investors to check that they are actually dealing with the company they think they are dealing with,” she said.


“Do not share personal information online unless you can verify who is using the information and how it will be used. We are seeing a rise in suspicious websites that are simply lead generators for scammers.


“Ensuring investment products are true-to-label is front and centre for ASIC. While true-to-label covers all aspects of the investment product being offered, the foundation stone is basic truthfulness, and none more so than that the product issuer is actually who they say they are. This conduct is beyond not being true-to-label; it’s bogus-to-label.”


 


 


Jotham Lian 
29 January 2021 
accountantsdaily.com.au




23rd-February-2021