SMSF adviser caught in super switch net
A self-managed superannuation fund adviser, who allegedly recommended consumers with as little as $8,000 in superannuation set up self-managed funds and then charged them up to $1,500 in fees, has been banned from operating businesses related to superannuation.
The Australian Securities and Investments Commission (ASIC) obtained Federal Court orders restraining Steve Preston (formerly known as Gordon Charles Fowler) and Manito, trading as Superannuation Retrieval Services (SRS), from carrying on a superannuation-related business.
ASIC alleged Preston and SRS were conducting a financial services business without an Australian Financial Services Licence (AFSL) and provided misleading advice to consumers about moving into self-managed superannuation funds (SMSFs).
The action arose out of ASIC’s superannuation switching surveillance campaign, which checks advisers are fulfilling their obligations to provide suitable advice concerning a client’s existing super fund and any new fund that might be recommended.
ASIC issued proceedings against Preston and SRS after SRS approached 34 Melbourne clients to roll their superannuation into SMSFs.
At least 10 of these clients have not yet received all of their superannuation funds and ASIC claims a significant amount of SRS clients’ superannuation entitlements remain unpaid.
The Court ordered Preston and SRS to pay back the clients or their superannuation funds and authorised ASIC to send out notices to the 34 known clients asking them to list their superannuation interests and advise ASIC of any amounts that remained unpaid.
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