Queensland-based financial adviser, William John Henry Houwing (known as Jack Houwing) has been permanently banned from providing financial services by the corporate watchdog after recommending his self-managed superannuation fund (SMSF) clients lend money to his related entities.
The Australian Securities and Investments Commission (ASIC) also cancelled the Australian Financial Services licence of Financial Options – the firm Houwing was a director and authorised representative of.
Between 31 August, 2006 and 15 May, 2019, Houwing arranged for his clients to lend money to his related entities including Belbrooke as a trustee for Belbrooke Administration Trust, Belbrooke as a trustee for Belbrooke Mortgage Trust, and Ochkit as a trustee for Houwing Family Trust.
ASIC found that Houwing:
- Failed to act in the best interests of his clients by recommending that they allow their self-managed superannuation funds (SMSF) to lend money to his related entities, particularly in circumstances where he failed to recommend that they obtain their own independent advice;
- Arranged loans from clients for his own use, and in some cases, benefited when he failed to repay the loans on time;
- Had a conflict of interest as both a financial adviser and the recipient of the loans, and failed to prioritise the interests of his clients over his own interests;
- Is not adequately trained or competent to provide financial services; and
- Is not of good fame or character.
ASIC commissioner, Danielle Press said: “The failure of financial advisers to act in the best of interests of their clients or to prioritise their clients’ interests over their own, not only harms their clients but also erodes public trust in the financial system”.
