Former SMSF adviser gets permanent ban
The Australian Securities and Investments Commission (ASIC) has permanently banned former financial adviser Nicholas Hunter from the financial services industry.
ASIC found Hunter advised a number of self-managed super fund (SMSF) clients to directly invest their SMSF in property during 2012. Hunter was selling the properties on behalf of a Queensland property development company, MOGS (in liquidation), and collecting commission of between $10,000 and $25,000 per sale.
Hunter failed to make adequate inquiries into the clients’ existing financial circumstances, including their existing SMSF portfolio and investment strategy, and did not give advice appropriate to the clients.
ASIC also found Hunter was involved in the issue of falsified Westpac financial letters to MOGS to facilitate payment of his commissions and failed to issue SMSF clients with Financial Services Guides and Statements of Advice.
ASIC also found Hunter operated a financial services company website when not licensed or authorised and provided financial advice to several SMSF clients in 2012 when not licensed or authorised.
Hunter has been an authorised representative of various financial services licensees dating back to 2002, with his most recent appointment with Spring Financial Group between May 2011 and June 2012.
However in a statement released by Spring FG the firm noted Hunter was never employed by Spring FG nor any subsidiary, was never involved in the operation or conduct of any Spring FG business and did not have any dealings with its clients.
Rather that Hunter was an employee of and representative of Murphy Dawson and for a limited period from May 2011 to May 2012 Murphy Dawson and Partners held a corporate authorised representative arrangement with Spring Financial which was unilaterally terminated more than three years ago following concerns as to the conduct of Murphy Dawson.
In 2013 Murphy Dawson was deregistered by ASIC.
ASIC commissioner, Greg Tanzer, said ASIC has recently turned its focus on the SMSF sector as it is the fastest growing superannuation sector.
“The matter involving Mr Hunter highlights ASIC’s concerns about the potential for direct property advice though SMSF to constitute financial advice. Further, the advisor must act in the best interests of the client in giving that advice,” he said.
Please note this story was updated at 11:30am to include the statement from Spring FG.
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