The Australian Securities and Investments Commission (ASIC) has banned a South Australian authorised representative of Centrepoint-owned Professional Investment Services from providing financial services for three years for being inadequately trained or competent.
The corporate regulator banned Ramana Rao after finding he demonstrated a lack of professionalism, judgment and integrity when advising some of his SMSF clients.
ASIC found Rao had advised one of his clients to receive financial assistance by drawing out funds from their SMSF where the removal was prohibited by the Superannuation Industry (Supervision) Act 1993 or the SMSF’s trust deed.
It also found Rao had failed to prioritise a client’s interests over his own by recommending his client’s SMSF provide a loan to Rao’s business when Rao knew this investment was unsuitable.
ASIC also found Rao had failed to give his clients statements of advice in both those instances.
Rao’s banning would be recorded on ASIC’s Financial Advisers Register. He has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.