ASIC orders fund manager to stop misleading radio advertising

ASIC (Australian Securities and Investments Commission) has ordered Skyring Funds Management to stop its misleading radio advertisements for a fixed income fund.

In June 2020, ASIC warned investors about advertising that compares fixed-term investment products to bank term deposits, and told seven responsible entities to correct their advertising in relation to a total of 13 funds, including the Skyring fixed income fund.

Although Skyring removed relevant advertising content from its website, ASIC later discovered that Skyring's fixed income fund was being falsely promoted as a term deposit in radio advertisements. The stop order against Skyring follows an ASIC review of the radio advertisements, which found that they contained misleading or deceptive statements which suggested that investments in the fund had the same or a similar level of risk as bank-issued products.

"This comparison is inaccurate because the fund carries significantly higher financial risk than bank-issued deposit products," ASIC said, adding that the fund's underlying assets include notes issued by a related entity and secured by property.

​ASIC may consider further regulatory action in relation to the fund and Skyring.