$900,000 penalty imposed over non-compliant time share advice
A time share company whose financial advisers were deemed to have prioritised its sales over appropriate advice has been penalised $900,000 by the Federal Court as a result of action initiated by the Australian Securities and Investments Commission (ASIC).
The company, Ultiqa Lifestyle Promotions which is in liquidation was found by the Federal Court in May to have been in breach of client best interests requirements.
Commenting on the penalty, ASIC deputy chair, Karen Chester said Ultiqua prioritised sales over appropriate advice and ultimately consumers’ best intersts.
She said the penalty imposed by the Federal Court was the first against a timeshare provider and sent a significant message to the timeshare industry.
“When sold alongside financial advice, it is both fundamental and legally required that the advice is in the consumers’ best interests,” she said.
Given the company is in liquidation, will the $900K fine be recouped from honest professional advisers as per ASIC’s usual process? Which will make it even harder for consumers to afford professional advice, which will make it even more likely consumers will be attracted to other scammers just like this one. Why is it that so much of what ASIC does ends up making things worse for consumers rather than better?