The Australian Securities and Investments Commission (ASIC) today announced the federal court has issued permanent injunctions against social media finfluencer Tyson Robert Scholz, also known as, ASX Wolf.
According to the official announcement, the court order permanently prohibits Scholz from carrying out any financial services business in Australia.
Scholz gave courses and workshops in trading ASX-listed equities. Additionally, he had 20,00 followers on private online forums and Instagram to who he offered stock trading advice. To lure in participants for his trading seminars, he posted images of luxury cars with the license plate ‘ASX Bull’ and pricey boats.
As per the court order, Scholz is barred from hosting online groups for which he charged membership fee and in which messages are exchanged by members about share trades without an Australian Financial Services Licence (AFS). He is also prohibited from carrying on a financial services business in the country.
ASIC filed a suit against Scholz in December 2021 seeking a restraining order against him from promoting or conducting any financial services in Australia. The court agreed on a interim order and ASIC moved for a permanent one in October 2022.
ASIC Deputy Chair Sarah Court said:
Financial services laws exist for the protection of investors. ASIC sought permanent injunctions in this case because the people who paid Mr Scholz to access private online forums where he made recommendations about shares, as well as those people who purchased shares based on these recommendations, did not have the benefit of these protections.
Anyone who recommends financial products or provides financial advice on social media must ensure they are complying with the law and may face ASIC enforcement action when they are not.
ASIC has warned companies against collaborations finfluencers in the past and has issued guidance on how the financial services law applies to them, threatening that if the regulator sees harm, it will take action.
