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Financial Adviser banned for failing to act in the best interests of his clients

BIScom Subsection: 
Editorial Staff

Financial adviser Drew Grosskreutz of Queensland, Australia, has been banned from providing financial services for three years, says ASIC

ASIC found that Grosskreutz advised clients to establish self-managed superannuation funds (SMSF) to purchase properties using a limited recourse borrowing arrangement without considering if this was in their best interests.

ASIC found that Grosskreutz failed to:

* properly 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;
* give priority to his clients' interests; and
* understand what was required of him to comply with the best interests duty.

The respondent has a right of appeal.