ASIC has banned a Queensland financial adviser from providing financial services for three years in relation to advice to use SMSFs to buy property.
The regulator announced that it has banned Drew Grosskreutz after finding he advised clients to set up SMSFs to buy property using Limited Recourse Borrowing Arrangements (LRBAs) “without considering if this was in their best interests”.
ASIC said it found Mr Grosskreutz had failed to properly identify what his clients wanted advice on, failed to reasonably investigate what financial products would best suit their needs and failed to “give priority to his clients’ interests”.
Mr Grosskreutz appears to remain the CEO of Otium, a Sunshine Coast based financial services firm, though his surname has been removed from the firm’s website.
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.”
Mr Grosskreutz has the right to appeal ASIC’s decision to the Administrative Appeals Tribunal.