The director of Brisbane-based boutique Real Wealth, former adviser David Orth, entered an enforceable undertaking with ASIC after the regulator found problems with a business model he introduced to the practice.
In a statement, ASIC said Real Wealth representatives failed to take into account the personal circumstances of clients when placing their clients’ consolidated super balance into a new fund, and instead often put clients into “a single fund that they had a relationship with, Hub24”.
Hub24 told ifa that neither Mr Orth nor Real Wealth had a special relationship with the business, nor were there any additional financial incentives for the practice’s advisers to use the Hub24 fund.
“There are over 1,000 advisers in the market who recommend the Hub24 platform to their clients,” a Hub24 spokesperson said.
“Mr Orth is an adviser who had clients invested in the Hub24 Super Fund up until July 2016. Hub24’s relationship with Mr Orth and Real Wealth is no different to any other adviser who recommends the Hub24 platform and Hub24 Super Fund. Hub24 had no other commercial arrangements with Mr Orth or Real Wealth.”
vertical integration!
If only they had a double degree and CFP status. That would of solved everything hey.
Looks like it’s another case of the regulator not understanding the market they are regulating….