ASIC tells consumers to avoid investment firm

Australians have been warned not to use a website that promotes financial investments offered by Skyllex, a company incorporated in Australia.

The Australian Securities & Investments Commission (ASIC) said it was concerned that Skyllex’s website contains “false, misleading or deceptive statements in relation to financial services”

ASIC said it had been told that overseas consumers who had used the website to sign up for the products and services offered by Skyllex had been unable to recover their funds.  

“The public should avoid using the website to sign up for any of the financial investments or other products or services advertised on it,” the financial services regulator said.

“We believe the information contained on the website is likely to mislead the Australian public.

“ASIC is warning that potential investors are likely to suffer detriment as a result of being misled.

“ASIC is also satisfied that it is in the public interest to warn the public about the conduct of Skyllex. Investigation into the company’s certificate of registration is continuing.”

ASIC details its concerns

One of ASIC’s concerns was a statement on Skyllex’s website that said: “Our activity is totally legal and regulated by the Australian Securities and Investments Commission.”

ASIC said that although Skyllex has been issued with a Certificate of Registration by ASIC, “it does not have an Australian financial services (AFS) licence and it is not authorised by an AFS licensee to provide financial services”.

ASIC was also concerned that Skyllex’s website said: “The Company’s activity is insured by QBE Insurance Group” and that by becoming a customer “You agree that all deposits and transactions are insured by the QBE Insurance Group”.

According to ASIC, “QBE does not provide deposit insurance of the kind referred to on the website and has no record of any relationship with Skyllex”.

ASIC was also concerned that the ‘Partners’ section on Skyllex’s website displays the logos of the Australian Securities Exchange, the Dubai Financial Market and the SWX trademark owned by SIX Swiss Exchange AG.

“Each of these organisations has confirmed that it does not have a partnership with Skyllex,” the regulator said.

Click here to see ASIC’s public warning register.