ASIC has banned financial adviser Jihad Soleiman, of Wollert, Victoria, from providing financial services for six years.
Mr Soleiman, an authorised representative of Apogee Financial Planning Limited (Apogee) during the period June 2013 to February 2018, had been approached by clients about SMSFs for the purposes of either investing into property or property development companies.
According to ASIC, Mr Soleiman had a conflict of interest because his clients were looking to invest through his brothers who were in the property development business.
He referred his clients to an SMSF administration business to facilitate the establishment of their SMSFs without providing advice, before then providing advice to roll over their existing super funds into their recently established SMSFs.
The corporate regulator said that Mr Soleiman was told by his licensee that he did not have the required expertise to advise on SMSFs generally, but he still proceeded to provide SMSF advice to his clients.
In doing so, Mr Soleiman failed to prioritise his clients’ interests and failed to act in the best interests of his clients with his advice.
ASIC believes he did not scope the advice to be consistent with his clients’ circumstances and subject matter of advice sought; had failed to make reasonable inquiries to obtain complete and accurate information about his clients’ relevant circumstances; and did not address how an SMSF property investment strategy would meet his clients’ retirement objectives.
Mr Soleiman was also found to be focused on the advice to his clients on rolling over to SMSFs without adequately considering alternative options, such as whether his clients would be better off retaining their existing super funds; and failed to adequately consider and provide information about significant risks and consequences when recommending his clients roll over their existing super funds to SMSFs for the purpose of investing into property.
“It is essential that before consumers commit to a significant decision to establish an SMSF, that they have access to quality advice that is tailored to their personal circumstances,” said ASIC commissioner Danielle Press.
Mr Soleiman, who was most recently an authorised representative of Infocus Securities Australia Pty Ltd, has filed an application to review ASIC’s decision in the Administrative Appeals Tribunal.
In addition to being an authorised representative of Apogee, Mr Soleiman was the sole director of W C R S Nominees Pty Ltd (trading as Wealth Protection Solutions), a corporate authorised representative of Apogee during the same period.
Agree entirely with Client. If I want a SMSF set up that is MY choice and mine alone so just set the thing up for me please. Don’t go delving into all sort of ‘advice’ that I do not want/need nor want to pay for!
I understand what the current rules and regulations are, though as a client I feel if I approach an Adviser saying I want to setup a SMSF I want him to setup the damn SMSF unless there’s a very obvious reason to him to say no. The government shouldn’t be dictating who should or shouldn’t be setting one up, or telling the Adviser they should analyse things I’ve said I don’t need, want or wish to pay for the analysis on.
If a dodgy Doctor want’s to prescribe you something that may be of high risk because you’ve demanded it regardless of the fact you don’t understand the complexities and risks to the same extent; they’ll deal with the consequences of the legal and professional frameworks in place to uphold the concept of fiduciary duty.
If a dodgy Accountant want’s to claim something on tax that is illegal to do so because you’ve demanded it regardless of the fact you don’t understand the complexities and technicalities to the same extent; they’ll deal with the consequences of the legal and professional frameworks in place to uphold the concept of fiduciary duty.
In all the above cases as a client you’re not liable for the poor outcomes you may suffer for a very good reason; this is basic consumer protection steeped in decades of tort law in the anglosphere. It exists for very good and very well founded and thought out reasons.
I’m an accountant and find my clients are frustrated with this process too and unfortunately I cannot do anything about it. If a client wants to start a pension from their SMSF I can’t put the paperwork in place for them unless I have done a statement of advice recommending they start a pension. If someone comes to me to establish a SMSF and I know an obvious reason why they should not do so, I cannot tell them why unless I do a statement of advice to tell them not to establish a SMSF. Its completely ridiculous.
Not so. As an adviser you have the duty to inform the client what you believe is in his best interest. I have had many clients wanting to set up a SMSF and had to tell them I thought it wasn’t a good idea in their particular circumstances. After explaining what is involved, and the client explaining why they wanted a SMSF (generally their golf mate had one..) they would mostly follow my advice. And yes,as a chartered accountant it cost me potential fees, as I didn’t ‘sell’ them anything else. It did build trust, though….
Wealth Protection Solutions…. 😛