Complaint Review: The Australian Shareholder Centre - Internet

I write to warn people regarding the Australian Shareholder Centre. They are based on the Gold Coast at Robina.  

I had a demonstration with their sales person recently and was permitted to have a more detailed look at the transactions they profess have returned over 400%.  I then went about analysing the results since October 2012 when The Australian Shareholder Centre was originally established.

They had transactions going back to 2007, and I assume they must be from their previous business TruMarkets which certainly had a very bad reputation aussiestockforums.com/forums/showthread.php?t=20161 

From my analysis of the transactions, adding in broking and interest charges, there was absolutely no profit whatsoever so they are total liars professing 400% returns.

Keep in mind this is theoretical trading so I expect the results with real money would be nothing other than complete financial ruin.

They also charge a whopping $7000.00 for membership so that’s a concern along with the fact I have found discouraging information on another forum aussiestockforums.com/forums/showthread.php?t=26968 and also a recent article written by Michael West a highly respected Financial Journalist at The Sydney Morning Herald.  smh.com.au/business/devil-in-the-detail-in-the-jungle-out-there-20140523-38u8z.html 

The Australian Shareholder Centre will not take phone calls unless you have registered on their website and I have asked questions via email but they will not answer basic queries in writing either. Another alarm bell!

I also notice they have 10 other business names. abr.business.gov.au/SearchByAbn.aspx?SearchText=53+138+723+412 

I am also not sure what the go is with this mob trading on your behalf and if they have a licence to do so.

The trades they take on Foreign Exchange and the International markets are entered and exited at hideous times of night or early morning so no one in their right mind would be transacting 24 hours a day, or authorising transactions during these times.

I was of the opinion a Stock Broker has to have a Managed Discretionary Account Licence with ASIC to trade on a client account without their authority, and after checking the details of the AFSL licensee Conquest Markets, of whom The Australian Shareholder Centre is a corporate authorised representative of, it appears they don’t have a licence to operate Manage Discretionary Accounts!

Also concerning and hidden in the legal terms and conditions australianshareholdercentre.com.au/index.php/home/legals/terms-conditions

It states:

5.9. By accepting these Terms and Conditions you acknowledge that the Australian Shareholder Centre does not provide the following services:

a) The Australian Shareholder Centre is not your stock broker or financial advisor

b) The Australian Shareholder Centre does not trade on your behalf

c) The Australian Shareholder Centre does not open, manage, or run brokerage and/or trading accounts

d) The Australian Shareholder Centre does not accept or hold on to any client funds, nor do we control our client’s funds

e) The Australian Shareholder Centre does not provide you with personal financial advice

So god knows who trades on your behalf when I was clearly told I didn’t have to worry about placing any trades as they do it for me?

I dare say what they are doing is potentially illegal. The only licence I am of the opinion of is The Australian Shareholders Centre has is a “Licence to Kill” hard working Aussies bank accounts!

Their website has the following disclaimer which is hidden away and very difficult to find. It is also in point 6 font and hard to read.

“All results although based on live trades are hypothetical and do not reflect an actual trading account. Entry and exit prices may differ between brokers.

Performance results do not take into account your individual risk profiles. Results vary based on your capital investment amounts, personal investment strategies, execution fees, execution prices and position sizes.

While every effort has been made to ensure the accuracy of all data neither the Australian Shareholder Centre nor its officers or employees can be held responsible for damages or losses caused by any inaccuracy.

The information displayed in both the chart and table above is provided for informational purposes only and is not indicative of, and has no bearing on, any results that may be achieved. Results of past performance are no guarantee of future returns. No assurance is given that you will not incur any further or future profits or losses. Please note that all historical trade recommendations and trade performance results shown on this website have been compiled and calculated for demonstrational purposes only using hypothetical trading entry and exit points and does not reflect any real trades or trading accounts. Some of the historical or current trade portfolios displayed on this site may also have also been provided partly or entirely from third party affiliated firms, internal Analysts, previously acquired companies, affiliated brokerage firms and/or affiliated analysts. The full trading parameters of each trading portfolio including each individual published trade are provided in detail within the traders statements are within this website”

And the last straw which was enough to make me run to the hills and have nothing to do with this company is under their terms and conditions they advise there is no cooling off period which I feel is in violation of consumer laws! accc.gov.au/consumers/sales-delivery/telemarketing-door-to-door-sales#cancellation-rights-cooling-off-

10. Cancellations

c) There is no "cooling-off" period on any Australian Shareholder Centre products or services

I also had a good look around the Money Smart Website.

moneysmart.gov.au/investing/complex-investments/contracts-for-difference 

moneysmart.gov.au/investing/complex-investments/foreign-exchange-trading 

The sales person at Australian Shareholder Centre certainly didn’t highlight the risks involved with CFD’s and Foreign Exchange trading.

In my opinion any company that professes ridiculous returns, who don’t put their real money on the markets, charge a whopping membership fee and churn your money to generate more brokerage commissions to line their own pockets shouldn’t be allowed to exist.

I also did a little more research. Just because a company operates under an Australian Financial Services Licence doesn’t mean they are not corrupt.

smh.com.au/business/romads-woes-highlight-flaws-in-financial-services-licensing-20111101-1mtwl.html

abc.net.au/news/2014-04-17/sonray-capital-markets-founder-jailed-for-theft-and-fraud/5398304

asic.gov.au/asic/asic.nsf/byheadline/14-068MR+ASIC+bans+former+Commonwealth+Financial+Planning+adviser+from+financial+services+and+credit+activities?openDocument

asic.gov.au/asic/asic.nsf/byheadline/12-296MR+ASIC+bans+financial+adviser+for+failing+to+comply+with+financial+services+laws?openDocument 

The Australian Shareholder Centre I believe is a total rip off scam. Unless a real client can prove with factual brokerage statements (not hypothetical rubbish) they have made money I would give them a very, very wide berth!