ETP provider fined for misleading promos

The provider of Australia's first exchange-traded bonds has been slapped with ASIC fines totalling more than $25,000 for making misleading statements online.

Australian Corporate Bond Company, provider of XTBs, has paid $25,200 in penalties for making misleading statements on its website in promotion of the products.

ACBC is alleged to have made the statements between May and December of 2017. They have since been amended.

The regulator was concerned that comparisons of the key attributes of term deposits and XTBs represented an investment in XTBs as carrying an equivalent or substantially the same risk as investments in term deposits, while producing a higher return.

ASIC deemed it to be misleading as the risks involved in XTB investments are not equivalent to or substantially the same as that in a term deposit.

Investments in a term deposit of up to $250,000 are protected by the Australian Government's guarantee for Authorised Deposit Taking Institutions whereas investments XTBs are not, ASIC said.

The infringement notices were issued to ACBC on 7 December 2018 and were paid in full by ACBC on 30 January 2019.

Read more: ASICACBCAustralian Corporate Bond Company
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