Sunshine Coast adviser banned

ASIC-ban/

13 October 2017
| By Hope William-Smith |
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

So we are now underwriting criminal scams?...

2 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

4 weeks 1 day ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

3 weeks ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

1 week 6 days ago

TOP PERFORMING FUNDS