The Australian Securities and Investments Commission (ASIC) has banned Gold Coast financial adviser, Daniel John Renneberg from providing financial services for five years after the regulator has found that he had failed to act in the best interests of his clients.
According to ASIC’s investigation, Renneberg, who was an authorised representative of Austplan at that time, received referrals from GM Homes Australia to help clients set up self-managed superannuation funds (SMSFs) to purchase an investment property.
Following this, he advised clients to set up SMSFs with limited recourse loan arrangements that “were completely unsuitable and placed his clients in a vulnerable financial position”, the regulator found.
“SMSFs are not for everyone and using an SMSF to borrow money and buy a property is a high-risk strategy. ASIC will be looking very carefully at advisers who recommend this strategy and taking swift action where we see problems,” ASIC’s commissioner, Danielle Press said.
“Financial advisers must not rely solely on client direction when establishing an SMSF. They must adequately demonstrate why an SMSF is appropriate and why it is in their clients’ best interests.”
Additionally, ASIC found other deficiencies in the financial services provided by Austplan’s representatives and was concerned about the firm’s ability to do all things necessary to ensure the advice provided by its representatives complied with the law.
Renneberg was an authorised representative of Austplan, between March 2015 and June 2018, and its sole director when Austplan’s licence was cancelled.