Former Melbourne adviser sees court-enforceable undertaking
ASIC has accepted a court-enforceable undertaking from a former Melbourne financial adviser regarding advice on self-managed superannuation funds (SMSFs).
Shivdeep Jaidka of Melbourne had a review of his advice conducted by ASIC which found he allegedly failed to comply with s961B and s961G of the Corporations Act in relation to SMSF advice.
Under the terms of the undertaking, Jaidka agreed that, for five years, he will not:
- Carry on a financial services business
- Provide financial services, or
- Act in a managerial capacity of any entity operating a financial services business or providing legal, accounting or other advisory services to a financial services business.
Jaidka is the first individual to receive a court-enforceable undertaking this year, although a company Elevare Pay Easy Pty received one at the start of February.
ASIC said it may accept a court enforceable undertaking to improve and enforce compliance with the law. They are not necessarily used as an alternative to other enforcement action but can complement or enhance such actions.
This is one of several actions taken against SMSF advisers and auditors in recent months.
In December 2023, Mudasir Mohammed Naseeruddin was sentenced to over four years imprisonment after dishonestly obtaining client funds from six investors’ SMSF accounts. He received a 4 years and 4 months total prison sentence on 21 December 2023, and will also serve a non-parole period of 2 years and 9 months.
In February 2024, it took action against nine SMSF auditors as they failed to meet the required standards. Stephen Bray, Kerpal Harnam, Terence Murphy, Johann Preller and David Sidhu were disqualified from being SMSF auditors and Timothy Davidson and Kylie Wilson had additional conditions imposed on their SMSF auditor registration.
AUTHOR
Laura Dew
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