Sunshine Coast adviser banned
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."
AUTHOR
Hope William-Smith
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