A BT Financial Group advertisement has prompted the Australian Securities and Investments Commission to caution investment funds against the misleading use of past performance information in advertising and promotional material.
ASIC said that an advertisement for an investment product offered by BT included past performance information that was potentially misleading because it encouraged consumers to believe past performance of the product was a reliable indicator of future performance.
It said BT had agreed to stop the existing advertising and refrain from using similar wording in future advertising.
ASIC executive director of consumer protection Greg Tanzer said past performance was not a reliable indicator of future performance and that undue emphasis on past returns could lead consumers to have unrealistic expectations and make poor investment decisions.
