Synergy Financial Markets Pty Ltd (Synergy) has paid a penalty of $10,800 after ASIC issued it with an infringement notice for false or misleading statements on its website.

Synergy trades equities and derivatives on behalf of its clients through the operation of two managed discretionary accounts.

Synergy stated several times on its website that investors who invest in its managed discretionary accounts will only pay Synergy ‘when your account profits’.

ASIC believed that these statements were misleading because, regardless of whether an investment in one of its managed discretionary accounts profits, Synergy charges investors:

• in one of its managed discretionary accounts: an annual management fee of 2 per cent of an investor's balance; and
• in both of its managed discretionary accounts: brokerage fees and commissions.

Synergy has removed the statements from its website.

Background

The payment of an infringement notice is not an admission of a contravention of the ASIC Act consumer protection provisions.

ASIC can issue an infringement notice where it has reasonable grounds to believe a person has contravened certain consumer protection laws.