A Perth-based adviser has copped a five-year ban from providing financial services for failing to meet best interest obligations with advice on self-managed super funds.
The adviser, Wayne Blazejczyk, has been banned for advice he gave while he was an authorised representative, responsible manager and director of Ballast Financial Management.
ASIC found Mr Blazejczyk had recommended that his clients set up SMSFs with low superannuation balances, exposing them to financial harm because their ongoing SMSF costs were higher than the costs of their existing super fund.
The regulator added that the adviser had failed to make reasonable enquiries to ascertain his clients’ relevant personal circumstances before giving advice, as well as neglecting to conduct a reasonable investigation into alternative products before he recommended that his clients establish SMSFs and among other things, invest in the Bateau Global Opportunities Fund.
Mr Blazejczyk is the ultimate owner and beneficiary of the SMSF administration service he recommended and the investment manager of Bateau Global Opportunities Fund. ASIC noted he had failed to prioritise his clients’ interests before his own.
ASIC said Mr Blazejczyk did not disclose his interests in entities related to him and the associated benefits and remuneration he would receive that could influence the advice he provided.
“For many retail clients with balances under $500,000, setting up an SMSF may not improve their position when compared to using an APRA-regulated superannuation fund,” ASIC said.
Mr Blazejczyk became an authorised representative of Ballast Financial in October 2003.
His banning will be recorded on the Financial Advisers Register and Banned and Disqualified Register.
Mr Blazejczyk has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.
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