ASIC issues ban over inappropriate SMSF investment advice
ASIC has banned a financial adviser from providing financial services after ASIC found they had exposed their SMSF clients to inappropriate high-growth asset allocation.
In a public statement, ASIC stated that it has banned Adelaide-based financial adviser Francesco Antonio (Tony) Romano from providing financial services and from being involved in the carrying on of a financial services business for five years.
The corporate regulator found that Mr Romano failed to provide financial advice that was appropriate and in the best interests of his clients. According to ASIC, he also engaged in misleading or deceptive conduct and was found not to be a fit and proper person to provide financial services.
“Mr Romano did not make reasonable enquiries to obtain complete and up-to-date information about his clients and failed to consider his clients’ needs and objectives when giving advice,” ASIC stated.
“Mr Romano also recommended that clients make no changes to their investment portfolios despite clients being invested outside the parameters of their risk profile or their SMSF’s investment strategy. This exposed his clients to having an inappropriate high-growth asset allocation.”
ASIC also found that Mr Romano made misleading and deceptive statements in an email to clients in which he falsely claimed that, prior to leaving ANZ, his files were audited and found to be exemplary.
The corporate regulator said the banning of Mr Romano is part of ASIC’s ongoing efforts to improve standards across the financial services industry.
Mr Romano has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.
Miranda Brownlee
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.
