A Perth adviser who did not assess whether SMSFs were appropriate for clients has been permanently banned by ASIC after he was also found to have engaged in misleading or deceptive conduct in regards to advice documents.
The corporate watchdog banned Phillip Emidio Bruni after surveillance found he had retrospectively created advice documents and reproduced a client’s signature.
Specifically, the regulator found Bruni had failed to create and retain statement of advice documents and to cover up his failure to obtain a signed ‘authority to proceed’ document he created replica documents by copying and pasting a client’s signature from a fact-find without the client’s consent or approval.
He was also found to have not told his licensee, or ASIC, that the documents were not originals and only admitted to creating the replica documents and the authority to proceed when questioned by the regulator.
In its review, ASIC also found he had failed to give appropriate advice or provide advice documents to his clients, and failed to act in, or prioritise, the best interests of his clients. He also did not objectively assess the information provided by his clients or tailor his recommendations to their circumstances.
ASIC made specific mention of SMSF-related advice, stating that in regards to property investment through an SMSF, Bruni did not make adequate inquiries to assess if an SMSF was appropriate or whether his client could undertake the role of an SMSF trustee.
Additionally, it said he could not demonstrate he had investigated alternative products or strategies for his clients and failed to provide information about the costs, benefits and consequences of his recommendations.
ASIC was notified of Bruni’s misconduct by Westpac and the regulator’s surveillance related to when he was an authorised representative of Westpac and, before that, of The Financiallink Group.
ASIC commissioner Danielle Press said the banning decision reflected expectations that advisers were honest and professional and “providing false evidence to ASIC under any circumstances is a breach of the law and will not be tolerated”.
Bruni’s ban will be recorded on the ASIC Financial Advisers Register and he has the right to appeal to the Administrative Appeals Tribunal for a review of the regulator’s decision.
