False or misleading representations in relation to financial products that involve interests in land

Offence title:

False or misleading representations in relation to financial products that involve interests in land

Act:

12DC Australian Securities and Investments Commission Act

Offence:

A person must not, in trade or commerce, in connection with the supply, or the possible supply, of a financial product that consists of, or includes, an interest in land, or in connection with the promotion by any means of a financial product that consists of, or includes, an interest in land:

(a)   represent that the person has a sponsorship, approval or affiliation it does not have; or

(b)   make a false or misleading representation concerning the nature of the interest in the land, the price payable for the financial product, the location of the land, the characteristics of the land, the use to which the land is capable of being put or may lawfully be put or the existence or availability of facilities associated with the land.

The Act sets out specific circumstances of offending.

Penalty:

2,000 penalty units

Summary/Indictable/mixed:

Summary

Jurisdiction:

Local Court

How committed:

A sales person represents that a personality has endorsed their land project, which is intended to, falsely, give credit to the product, when no such endorsement has actually occurred.

Important note:

Limitation period: 3 years