ASIC has fined foreign exchange trading platform and product provider, Online Capital Markets (OCM), for false and misleading advertising.
OCM has paid $30,600 in penalties after ASIC issued three infringement notices for false or misleading online advertising, a statement by the regulator said.
According to the statement, OCM did not adequately convey that trading in margin foreign exchange derivatives was high risk. The company also gave the impression that its service could be relied upon to provide fast and substantial profits.
ASIC commissioner Greg Tanzer said: “Margin foreign exchange and derivative trading is high risk and gives volatile returns.
“Consumers should not be misled by false claims about the level or consistency of returns achievable from such trading.”
Each infringement notice received by OCM imposed a penalty of $10,200.
Just one financial penalty has so far arisen out of the cases referred to ASIC following the royal commission, despite the regulator suggest...