A FINANCIAL adviser has been banned from providing financial services for three years.
After an investigation, the industry watchdog Australian Securities and Investments Commission slapped a ban on 39-year-old former Mackay man Drew Grosskreutz for failing to act in his clients' best interests.
In a written statement, ASIC said it had investigated files from when Mr Grosskreutz was an authorised dealer in Maroochydore for AIW Dealer Services between January 2013 to September 2016, for the company Otium Advice Pty Ltd.
"ASIC found that Mr Grosskreutz advised clients to establish self-managed superannuation funds to purchase properties using limited recourse borrowing arrangement without considering if this was in their best interests," the statement said.
According to ASIC Mr Grosskreutz failed to properly investigate what his clients wanted and what best suited their needs; make reasonable enquiries into the clients' relevant objectives, financial situation and needs; give priority to his clients' interests and; understand what was required of him to comply with the best interests duty.
"The decision to establish an SMSF is one of the most significant steps a consumer can take in relation to their retirement savings," ASIC deputy chairman Peter Kell said.
"It is therefore essential that before making the decision to set up an SMSK, consumers have access to good quality, tailored advice that is not conflicted."
Mr Grosskreutz has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision. He didn't respond to requests for an interview yesterday.
In 2015 Otium Advice, of which Mr Grosskreutz was CEO, was voted the most trusted self managed super fund professionals in Queensland.
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