Stock trader Tyson Scholz, also known as “ASX Wolf” is facing trial by the Australian Securities and Investments Commission (ASIC), which claims that Mr. Scholz has provided financial advice for stock trading without being authorized to do so. Scholz is accused of having “provided recommendations or statements of opinions about the purchase of shares, in return for payments of money or other benefits”. The allegations follow revelations that Mr. Scholz was charging AUD1,000 for joining a members-only online chat room that discussed stock trading, while advertising his trading seminars via social media.
The regulator clarifies that financial advice is provided only by qualified and licensed financial advisors. Consumers who receive advice from unlicensed individuals and companies are not protected by law, as are consumers who receive advice from licensed companies.