ASIC this week reiterated its advice to consumers to be aware of the risks and complexities of ASX listed hybrid securities following a number of offers to have hit the market recently. ASIC Commissioner John Price said that ‘Despite household name companies and trusted brands being linked to certain offers and promises of ‘high yields’, consumers should be very careful.’
This follows initial action by ASIC in March 2012 after the Commission became concerned that such products were being pushed to retail clients, who do not understand the potential risks entailed, with some stock brokers taking significant margins to do so (up to 1.75%).
See the announcement here.