Scholz has been barred, per court order from hosting online groups in which members exchange messages about share tradings. Scholz also cannot charge a membership fee for these groups. Scholz is prohibited from operating a financial service business in Australia.
ASIC brought a lawsuit against Scholz in Australia in December 2021, seeking an injunction to prevent him from promoting any financial services or conducting them in Australia. ASIC sought a permanent order after the court approved an interim one.
Sarah Court, ASIC’s Deputy Chairperson, said:
Financial services laws are in place to protect investors. ASIC requested permanent injunctions because people who paid for Mr Scholz’ access to private forums on the internet where he gave recommendations about shares and people who bought these shares did not receive the protection provided by these laws.
ASIC can take action against those who violate the law by recommending or providing financial advice through social media.
ASIC has in the past warned companies about collaborations with finfluencers, and issued guidance regarding how the…