ASIC found Mr Toledo had failed to act in his clients’ best interests when advising them to create a self-managed super fund in order to purchase property, and failed to “provide advice appropriate to the clients”.
“Financial advisers have a clear duty to act in their clients’ best interests,” said ASIC deputy chair Peter Kell.
“In some cases, advice to establish an SMSF for the sole purpose of purchasing a property may not be in a client’s best interests, particularly where the SMSF borrows funds to enable the purchase.”
ASIC’s surveillance of Mr Toledo examined a number of client files from his work with Sentinel Private Wealth, where he commenced in March 2014.
Mr Toledo’ has a right to appeal the banning through the Administrative Appeals Tribunal.
Well he is in good company, yet another “adviser of the Year” banned from practice. Gota love our industry.
Holy Toledo! Badman.
OMG he is not from a bank or a vertically integrate business, how on earth did he do anything wrong
Should be rubbed out for life
Are you serious ? Why?
Got banned for recommending a “slef-managed super fund”
No, got banned for operating in a property development seminar -> property purchase -> SMSF -> mortgage broker -> Insurance ring that happened to hang a ‘Private wealth’ shingle on the door.
So yes, given the propensity of such individuals to magically ‘change their ways’ a lifetime ban isn’t exactly out of the question. And lets face it, the bar in the industry is so so low that if you’re being investigated by ASIC directly AND cop a 7 year ban, in all probability, you must be operating at a particular level of stupid.
What was wrong with the advice he gave Patrick? Is it just that you dont like property investment?
If someone wants to buy property using their super they need an SMSF, they need a loan (generally), and there is a duty for the trustee to consider insurance as part of the investment strategy and their is a BID for the adviser to be making appropriate recommendations to the client. So all the elements you state as “a ring” are all vital elements to the process.