Regulator news

Contracts for difference – CFDs – are risky financial products that should not be marketed to ordinary retail investors in CFA’s opinion. CFD’s are not ordinary shares and significantly magnify the risks of investing. CFA has welcomed ASIC’s release of new disclosure benchmarks for CFDs that aim to improve disclosure and investor awareness about risks…

Read More CFA welcomes ASIC action on Contracts for Difference (CFD)

ASIC has taken action against Shield Mercantile Pty Ltd following complaints from consumers about harassment. Among the complaints were concerns regarding unduly frequent contact with debtors, contact with third parties, inappropriate and aggressive phonecalls and inadequate internal dispute resolution policies and procedures. ASIC spokesperson, Greg Kirk, said: ‘Creditors and debt collectors can’t behave in a…

Read More Action on debt collection complaints

ASIC has released proposals for modifying the training requirements for credit representatives who provide credit assistance to consumers on home loans. The proposals address some recent industry concern about the training requirements. ASIC believes the proposals strike an appropriate balance between the interests of confident and informed financial consumers and the regulatory obligations of market…

Read More ASIC considering changes to home lending training requirements

ASIC has successfully completed the major initial licensing of consumer credit businesses as part of the transition to the new national consumer credit laws. ASIC Commissioner, Peter Boxall, said only licensed people or businesses can carry on consumer credit activities now. ‘If you are getting credit or getting advice or assistance on credit make sure…

Read More ASIC refuses four applications for credit licenses and puts conditions on others

On 1 July ASIC announced that it had commenced criminal proceedings against officers of the Wespoint companies for breaches of the corporations act. In a separate matter Rundle was found guilty by a Sydney jury of making misleading statements to a financial institution in support of a $71 million credit facility to fund a Westpoint…

Read More Westpoint and other recent ASIC enforcement actions

CFA welcomes recent action by the ACCC to respond to misleading advertising in the communications sector. In July the Federal Court  ordered Optus to pay $5.26 million in civil pecuniary penalties for breaches of the Trade Practices Act through the advertising of  various broadband internet plans. In recent months, the ACCC has successfully taken enforcement…

Read More Optus latest telco to be stung for misleading advertising

Allphones penalised $45,000 for contempt of court The Federal Court has penalised Allphones Retail Pty Ltd $45,000 for contempt of orders following action by the Australian Competition and Consumer Commission. For more information see the ACCC website. Optus penalised $5.26 million for misleading broadband advertising The Federal Court has ordered Optus to pay $5.26 million…

Read More ACCC Enforcement Announcements, July 2011

Ross Gittins photo Ross Gittins photo

Ross Gittens delivers the 2011 Ruby Hutchison Memorial Address The ACCC, in conjunction with CHOICE, presented the Ruby Hutchison Memorial Lecture delivered by Mr Ross Gittins AM, Economics Editor, Sydney Morning Herald on 6 June 2011. Traditionally held on the eve of the annual national consumer conference, the Ruby Hutchison address is held in honour…

Read More Consumer sovereignty in an age of republicanism

ACCC issues guidance on fibre and cable broadband ‘speed’ claims The Australian Competition and Consumer Commission published an Information Paper in July to assist providers of hybrid fibre-coaxial (HFC) and fibre to the premises (FTTP) broadband internet services in complying with the Competition and Consumer Act 2010. For more information see the ACCC website. Scammers…

Read More ACCC Telecommunications Announcements, July 2011

ACCC concerned baby bling still on sale The Australian Competition and Consumer Commission is concerned that baby bling is still available for purchase online despite a national ban introduced by the Parliamentary Secretary to the Treasurer, David Bradbury, on Friday, 15th July. For more information, go to the ACCC website. National product safety ban for…

Read More ACCC Product Safety Announcements, July 2011