Former SMSF adviser charged for breaching ASIC ban

Mr Toledo, a former financial adviser, was banned from providing financial services for seven years after ASIC found he had failed to act in the best interests of his clients when advising them to establish an SMSF to purchase properties.

“ASIC alleges that Mr Toledo breached the existing banning order by providing financial advice to an SMSF to invest in Premier Realty Group Pty Ltd and arranging the sale of a financial product (70,000 shares in Premier Realty Group for $70,000) to the SMSF,” ASIC stated.

“Furthermore, Mr Toledo arranged a second sale of financial products (14,000 additional shares in Premier Realty Group, costing $14,000) to the same SMSF.”

Mr Toledo’s partner at the time was the sole director of Premier Realty Group. This information was not disclosed to the SMSF and its trustees.

ASIC’s previous surveillance of Mr Toledo also looked at a number of his client files from Sentinel Private Wealth Pty Ltd (Sentinel), where he has been an authorised representative since March 2014.

The maximum penalty for each charge of engaging in conduct in breach of a financial services banning order is $5,250 or imprisonment for six months, or both.

The matter is being prosecuted by the Commonwealth Director of Public Prosecutions following a referral from ASIC and has been adjourned for mention on 1 October 2021. 

Mr Toledo’s banning is recorded on the Financial Advisers Register and the Banned and Disqualified Persons Register. This ban expires on 5 September 2024.