ASIC has imposed licence conditions on JB Global Pty Ltd, saying that one of the company’s product disclosure statements (PDS) for structured products did not go far enough in explaining the risks involved in the complex vehicles.
However, JB Global founder and managing director Justin Beeton said the PDS in question was one of about 20 issued by the company, and the company had acted quickly to rectify the matter.
ASIC’s announcement is its latest in a rigorous push to raise the bar on PDSs, making them more informative and easier to understand.
“Investors must be able to confidently rely on the accuracy and appropriateness of information provided by product issuers and advisers,” ASIC chairman Greg Medcraft said in a statement.
“Where this doesn’t occur, ASIC will focus their resources and act appropriately, holding these important gatekeepers to account,” Medcraft said.
The regulator said it had obtained ‘corrective disclosure’ from JBG Structured Investments Pty Limited in relation to the JB Global Income & Equity Accelerator Units Series 12, 14 and 15 PDS dated 29 November 2010.
JB Global was the lead adviser in the PDS, ASIC said, adding it planned a wider report on capital-structured products later this year.
However, Beeton said JB Global had quickly corrected the PDS.
“JB Global is confident the issues raised have been already rectified, and we continue to be fully committed to ensure the high ethical standard that is the cornerstone of our company is maintained and, above all, abide by all the laws governing the industry,” Beeton said in an email.
As a result of ASIC’s findings, JB Global has agreed to a review of 100 personal advice files by an independent firm, to pay remediation to clients who may have received inappropriate advice, and the appointment of a law firm to monitor its marketing materials.
