The Australian Securities and Investments Commission (ASIC) has banned financial adviser Drew Grosskreutz from providing financial services for three years.

ASIC found that Mr 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 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."

ASIC found that Mr 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.

Mr Grosskreutz's banning will be recorded on ASIC's register of financial advisers.

Mr Grosskreutz has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision.

ASIC's MoneySmart website has useful information on SMSFs and property, as well as information to help clients understand what to do if their adviser has been banned.

Background

ASIC's surveillance of Mr Grosskreutz looked at a number of his client files from AIW Dealer Services Pty Ltd (AIW), where he was an authorised representative from January 2013 to September 2016. Mr Grosskreutz was appointed by a corporate authorised representative of AIW called Otium Advice Pty Ltd.