ASIC bans Adelaide adviser over early super release
The Australian Securities and Investments Commission (ASIC) has banned an Adelaide-based financial adviser from providing financial services for five years after problems with the early release of superannuation.
Antonio Simeone was current director, authorized representative, key person and responsible manager of Simeone Pty Ltd and a director of Administrative Incentivised Management Systems Pty Ltd (AIMS), a company he recommended his clients invest in and borrow money from.
ASIC surveillance of Simeone found he was engaging in misleading or deceptive conduct when he recommended and facilitated the illegal early release of super.
He recommended clients who were under financial pressure to roll over their APRA-regulated superannuation fund to a Self-Managed Superannuation Fund (SMSF) and invest in AIMS. He then allowed the clients to borrow some of what was invested in AIMS, on the understanding there was no obligation to repay what was lent.
ASIC said: “Mr Simeone’s clients relied on his advice and assumed that the investing of superannuation in AIMS, and the receipt of loans from AIMS, was legally permissible and appropriate. The strategy Mr Simeone recommended to, facilitated for, and allowed for his clients, resulted in his clients breaching the restrictions on the early release of superannuation benefits, and their SMSF not satisfying the requirement that it meet the Sole Purpose Test”.
His conduct demonstrated he was not adequately trained or competent, was not a fit and proper person and was likely to contravene a financial services law in the future, the regulator said.
The ban prevented Simeone from providing any financial services and from being involved (including as an officer, manager, employee, contractor or in some other capacity) in managing, supervising, or auditing the provision of a financial service and the provision of training about a financial service or a financial product.
In addition to the banning, ASIC cancelled the Australian financial services licence of Simeone Pty Ltd.
ASIC’s decision to ban Simeone remained under review at the Administrative Appeals Tribunal.
AUTHOR
Laura Dew
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