Australian Managed Funds provider Synergy Financial Markets reviews its funds management business and launches new strategy
Australian FX firm Synergy Financial Markets recently came under the scrutiny of the regulatory watchdog ASIC, in relation to the use of misleading wording on its funds management website.
Synergy was ordered to pay an infringement penalty and has been working closely with the regulator to rectify the errors whilst it updates its funds management website. This penalty is not in regards to its FX business.
Synergy has accepted that the claims that Synergy does not make money unless the client makes money could be misleading. Synergy acknowledges that in its documentation it quoted that it will charge a 2% management fee on its funds management business.
Even though this fee has never been levied against its clients, Synergy do agree that the statement doesn’t purport the fact. Further Synergy acknowledges that clients will pay brokerage fees on trades, even though those brokerage fees are collected by a third party broker and not Synergy, it acknowledges that the statement was not clear.
Christian Dove is pleased with the regulatory process and has worked closely with ASIC and his team to improve and strengthen the messaging of the fund management offering.
Christian said that “Whilst we accept the constructive criticism, we want to make it clear that no customer has suffered in any way and that we actively welcome stringent control and regulation within our industry. We’re very proud of our FX broking offering; our education suite; and our professional funds management business”.
Going forward, Christian indicated that the funds management business will be operating as per normal, with increased messaging clarity across the new website encompassing the existing Arbidyne fund, as well as the new Argonaut Strategy managed account product being launched.