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

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.



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