Sunshine Coast adviser banned

ASIC-ban/

13 October 2017
| By Hope William-Smith |
image
image image
expand image

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."

 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

The succession dilemma is more than just a matter of commitments.This isn’t simply about younger vs. older advisers. It’...

1 month 1 week ago

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

2 months ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

2 months 1 week ago

ASIC has canceled the AFSL of Sydney-based asset consultant and research firm....

1 week ago

The Reserve Bank of Australia has announced its latest interest rate decision following this week's monetary policy meeting....

2 weeks 2 days ago

A former financial adviser who stole $4.4 million from his family and friends to feed gambling debts has been permanently banned by ASIC....

2 weeks 6 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
moneymanagement logo