A Gold Coast superannuation adviser has been jailed for two years for his role in a superannuation rollover benefits scheme.
In August, this year, Rocco Ferrantino pleaded guilty to seven counts of dishonestly inducing holders of superannuation benefits to rollover their preserved superannuation benefits into First State Superannuation Funds, a superannuation fund connected to First State Home Loans.
Last week, Ferrantino was sentenced to 18 months imprisonment, to serve five months, in relation to this charge.
Ferrantino also pleaded guilty to an additional three counts of causing detriment to clients who sought assistance from him in relation to the purchase of a home.
In relation to these charges, Ferrantino was sentenced to two years in prison, which will be suspended after five months.
Between February, 1998, and July, 2001, the Australian Securities and Investments Commission (ASIC) alleged that Ferrantino falsely advised clients who wanted to buy a home that their preserved superannuation could be used to assist them with the purchase price.
Under the relevant superannuation regulations, preserved benefits are to be retained in superannuation funds until the owner of the policy retires after 55 years of age, or when other limited criteria prescribed by the legislation are met.
ASIC said the jail sentence handed down to Ferrantino sent a strong message to advisers who dishonestly and deliberately advised clients about rolling over superannuation benefits that they would face the consequences.
“ASIC will take action to ensure the promoters of schemes designed to give consumers illegal early access to their superannuation are brought before the courts. We also remind consumers that establishing a self-managed superannuation fund for the purpose of gaining early access to preserved superannuation is prohibited and may expose consumers to tax penalties and other risks,” said ASIC executive director of enforcement Jan Redfern.
