Shivdeep Jaidka of Melbourne had a review of his advice conducted by the Australian Securities and Investments Commission (ASIC) which found he allegedly failed to comply with s961B and s961G of the Corporations Act in relation to SMSF advice.
Under the terms of the undertaking, Mr Jaidka agreed that, for five years, he will not:
- Carry on a financial services business.
- Provide financial services.
- Act in a managerial capacity of any entity operating a financial services business or providing legal, accounting or other advisory services to a financial services business.
Mr Jaidka is the first individual to receive a court-enforceable undertaking this year, although a company, Elevare Pay Easy, received one at the start of February.
In December 2023, Mudasir Mohammed Naseeruddin was sentenced to over four years’ imprisonment after dishonestly obtaining client funds from six investors’ SMSF accounts.
He received a four-year and four-month total prison sentence on 21 December 2023, and will also serve a non-parole period of two years and nine months.
ASIC said it may accept a court enforceable undertaking to improve and enforce compliance with the law. They are not necessarily used as an alternative to other enforcement action but can complement or enhance such actions.
ASIC will not usually accept a court enforceable undertaking:
- Instead of pursuing criminal court proceedings.
- Where the misconduct is deliberate or involves a high level of recklessness.
- After a matter has been referred to an ASIC delegate or another specialist body.
