ASIC has banned a self-managed super fund adviser from providing financial services for five years for failure to meet best interests obligations.
Wayne Blazejczyk was investigated by ASIC when he was an authorised representative of Ballast Financial Management.
ASIC found that Blazejczyk had recommended that his clients set up SMSFs despite them having low superannuation balances.
This meant those clients were exposed to financial harm because the ongoing costs of operating the SMSFs where higher than the costs of their existing funds.
ASIC said in a statement: "Mr Blazejczyk failed to make reasonable enquiries to ascertain his clients' relevant personal circumstances before giving advice and failed 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."
Blazejczyk was not only the beneficiary of the SMSF administration services he recommended but the investment manager of Bateau Global Opportunities Fund.
He failed to disclose those conflicts of interest in statements of advice to clients.
The ASIC Financial Adviser Register shows Blazejczyk is a member of the SMSF Association, the Association of Independently Owned Financial Professionals and the Tax Practitioners Board.