In a statement, ASIC said it had permanently banned Nizi Bhandari, who had been self-licensed under Victorian advice business The Australian Dealer Group (ADG) from 2017 to 2020.
“ASIC found that Mr Bhandari acted dishonestly while assisting consumers to find and consolidate their superannuation and obtain hardship payments,” the regulator said.
“This included instances where Mr Bhandari told consumers to make false statements to their superannuation fund trustees in order to gain early access to their superannuation balances.”
ASIC said it had also found Mr Bhandari and ADG gave personal advice despite only being authorised to provide general advice, and as such failed to comply with obligations around personal advice such as considering the client’s best interests.
“By engaging in this conduct, Mr Bhandari and ADG were involved in multiple contraventions of financial services laws,” ASIC said.
The regulator said it had cancelled ADG’s licence after finding that “its business model was not designed to comply with its obligation to act efficiently, honestly or fairly when providing financial services”.
The business had been involved in multiple legal breaches including not complying with the ATO’s conditions around lost super searches, acting without the consent of consumers, charging fees for super consolidation that were not transparently communicated to clients, and pressuring consumers into signing agreements over the phone without giving them adequate time to consider terms and conditions.
“As a consequence of this conduct, consumers were potentially exposed to harm, including loss of insurance held through superannuation, extra fees and ATO penalties for inappropriate access to superannuation,” ASIC said.
ADG had operated a website called Australian Super Finder, through which a consumer could request a search for lost superannuation. ADG then offered to consolidate the consumer’s ‘found’ superannuation into a new superannuation fund or ‘temporary recovery account’.
The problem here was one of an adviser acting outside of his authority. He had been terminated previously yet was still able to go and get his own license from ASIC without any background checks being done?? Quite an interesting double standard at play
How is this example of providing personal advice to switch super when only licensed to provide general advice, any different to what union super fund call centres do?
Good riddance
When I search Nizi Bhandari on the Financial Adviser register his name does not come up. Therefore he is NOT and Adviser!
ASIC AFS Rep No. 000462591 (ceased)
Didnt he know that ASIC only allows Mortgage Brokers, Real Estate agents and Accountants to provide un licensed advice to withdraw super
and Tim Wilson MP
…and the barefooted ‘oneder……
I don’t believe that the barefoot oneder is telling people to access it early, but there was definitely a campaign for a while to move it all to the HOST+ nil fee option.
What the MP and the Barefoot fellow are doing though is using that lack of financial literacy in the public to advance their own agenda because they speak from a position of “authority”.
Some people think that the MP, who is anti industry funds and pro “bank” funds etc is a good place to get their advice. His stupid “Home first super second” would only force feed more money into a housing market that’s already unaffordable for so many.
Really as advisers – a proper adviser chooses the right tool for the customer from the available selection products in the marketplace. Sometimes that’s an industry fund, other times, an SMSF, etc. An adviser should be product agnostic and make a recommendation based upon need.
That means not everyone coming through your door is going to get the same recommendation, to go into the SMA in a Super Wrap structure that your office thinks is good at the moment, or everyone goes to the same insurer because the commissions are good etc.
But the MP and the Barefoot guy probably have bigger impact than your local adviser does on decision making because for the past 10 years every local adviser has had to deal with the Royal Commission, watching criminal after criminal get caught, or even turn up dead after taking client money and therefore no one trusts the guy or lady who has 20-40 years experience growing peoples money slowly.
ASIC only wins the battle here instead of winning the War. I have seen banned advisers continue to work under the umbrella of another adviser without interruption such as Joshua Fuoco who got banned 4 years ago and is still operating from a Melbourne office using some other mugs AR. Even when these cowboys get banned, they just call up old mate next door and grease their pockets to continue with “business as usual” until they get busted which will take at least another 3 years before it catches up with them.
Are ASIC dog-whistling AGAIN about another non-Advisor? Someone who is only licensed to provide general advice is NOT an Advisor, whatever ASIC choose to call them.
If the “adviser” was not authorised or licensed to provide personal financial advice, as your article reads, then why does your headline read “Adviser cops permanent ban”??
Cant see that they were ever on the FAR….
Exactly, this publication does this consistently – clickbait!
looks like the weeding out of a cowboy/bad apple.