ASIC has announced that Westpac Banking Corporation has agreed to review its marketing of geared investment strategies using the phrase ‘stress-free’ following ASIC concerns that the description could be misleading, or likely to mislead.

ASIC was concerned that products – including margin loans, exchange traded funds and self funding instalments – were being marketed in print media, online and within a brochure using the line ‘Stress-free strategies to accelerate your wealth – A guide to borrowing to invest in shares.’

ASIC believes that although Westpac’s promoted strategies had relatively lower levels of gearing, there are risks involved in gearing to invest in shares which would make it unlikely that any such strategy would be ‘stress-free’.

In response to ASIC’s concerns, ASIC said that Westpac agreed to cease using the phrase ‘stress-free’ in its marketing.

Marketing must be assessed from the point of view of a consumer to determine whether it could be misleading or deceptive.