Invast Financial Services Fined by ASIC for Providing Misleading Information to Clients
- A Sydney-based broker is fined $20,400 for two infringements relating to marketing services to clients. The penalty indicates ASIC is stepping up its vigilance of financial services offered to retail customers.


Invast was issued with two separate infringement notices in July and the company has since paid the $10,200 charged for each infringement.
In a press release published today, ASIC asserts that in May 2014, representations on the Invast website contained a link that invited investors to undertake "risk-free trading" of contracts for difference (CFDs) for foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term. ASIC considered the representation as misleading because "a reasonable investor may be misled into believing that the platforms promoted in the demonstration involved risk-free trading, rather than understanding that the demonstration account was risk-free," according to ASIC.
In addition, ASIC was concerned that an email to prospective clients, containing a statement claiming investors could access 'low risk, high reward trading opportunities' by viewing Invast's video tutorial and e-book, was inconsistent with disclaimers sent and published elsewhere.
In general, ASIC believes that both the email to prospective clients and statements on the website misled consumers about the inherent risks of trading foreign exchange and derivatives.
Accompanying ASIC's statement, Deputy Chairman Peter Kell said, "Trading in CFDs and other derivatives, by their nature, involve risks. It is important that consumers are aware of these risks and can make fully informed decisions when considering a particular investment strategy," Adding, "AFS licensees should ensure the content of their promotional material does not contain any false or misleading statements that misstate or underplay these risks and create unrealistic expectations for consumers."
Since the infringement notices were sent out, Invast has adjusted its website and claims that all marketing materials are now fully compliant with all ASIC regulations and guidelines.
ASIC's monitoring of the retail FX industry continues and underlines the growing vigilance with which the regulator is monitoring the industry.

Invast was issued with two separate infringement notices in July and the company has since paid the $10,200 charged for each infringement.
In a press release published today, ASIC asserts that in May 2014, representations on the Invast website contained a link that invited investors to undertake "risk-free trading" of contracts for difference (CFDs) for foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term. ASIC considered the representation as misleading because "a reasonable investor may be misled into believing that the platforms promoted in the demonstration involved risk-free trading, rather than understanding that the demonstration account was risk-free," according to ASIC.
In addition, ASIC was concerned that an email to prospective clients, containing a statement claiming investors could access 'low risk, high reward trading opportunities' by viewing Invast's video tutorial and e-book, was inconsistent with disclaimers sent and published elsewhere.
In general, ASIC believes that both the email to prospective clients and statements on the website misled consumers about the inherent risks of trading foreign exchange and derivatives.
Accompanying ASIC's statement, Deputy Chairman Peter Kell said, "Trading in CFDs and other derivatives, by their nature, involve risks. It is important that consumers are aware of these risks and can make fully informed decisions when considering a particular investment strategy," Adding, "AFS licensees should ensure the content of their promotional material does not contain any false or misleading statements that misstate or underplay these risks and create unrealistic expectations for consumers."
Since the infringement notices were sent out, Invast has adjusted its website and claims that all marketing materials are now fully compliant with all ASIC regulations and guidelines.
ASIC's monitoring of the retail FX industry continues and underlines the growing vigilance with which the regulator is monitoring the industry.