Sunshine Coast adviser banned
A financial adviser based in Maroochydore has been banned from providing financial services for three years, after the Australian Securities and Investments Commission (ASIC) found he had not acted in line with clients’ best interests.
The regulator found that Grosskreutz of Otium Advice had advised clients to establish self-managed superannuation funds (SMSF) to purchase properties using a limited recourse borrowing arrangement, without consideration for their best interests.
ASIC found that Grosskreutz had failed to:
- Identify what it was that his clients wanted advice on, and to reasonably investigate what financial products would best suit their needs;
- Make reasonable enquiries into the clients' relevant objectives, financial situation and needs;
- Prioritise clients' interests; and
- Understand his best interests’ duty compliance obligation
Commenting on the Grosskreutz behaviour, ASIC deputy chairman, Peter Kell, said: “The decision to establish an SMSF is one of the most significant steps a consumer can take in relation to their retirement savings.”
“It is therefore essential that before making the decision to set up an SMSF, consumers have access to good quality, tailored advice that is not conflicted."
AUTHOR
Hope William-Smith
Recommended for you
ASIC has issued infringement notices to two AFSLs over financial advisers providing personal advice while they were unregistered.
Australian retirees could increase their projected annual incomes by as much as 51 per cent through comprehensive financial advice, according to a Vanguard study, but cost continues to be an issue.
AMP has announced a senior appointment to its North leadership team, reinforcing the firm’s commitment to the advice industry.
Despite the financial adviser exam being rooted in ethics, two professional year advisers believe the lack of support and transparency from the regulator around the exam is unethical.
