# ASIC takes action on deficient advice on complex structured investment products



## Investment Guy (24 February 2015)

Hi All,

For those interested, the following is an extract of a media release that has just been published by ASIC today:

*ASIC takes action on deficient advice on complex structured investment products*

ASIC concerns about financial advice relating to complex products has led to 10 licensees undertaking corrective action.

ASIC released a report in December 2013 which looked at advice provided by 10 licensees in relation to retail structured products. These are investments whose value is based on the movement of underlying assets such as a share index, generally using derivatives arrangements. The report also looked at advice on limited recourse (or 'protected') loans that are used to buy shares.

ASIC's report had a particular focus on structured products described as 'capital protected' or 'capital guaranteed' because these labels tend to attract consumers who are after lower risk products. However, the complex nature of these products meant that some consumers did not understand what, if anything, was protected. Too often advisers promoting these products were not adequately considering the consumer's needs and circumstances. 

For full details, just go to the "Media releases" section of the ASIC's home page.

-IG


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