The Australian Securities and Investments Commission (ASIC) has banned a West Australian SMSF adviser for five years for failing to meet best interest obligations by recommending clients set-up funds despite having low superannuation balances.
ASIC stated it banned Perth-based adviser Wayne Blazejczyk from providing financial services after it found his advice exposed client to financial harm as the ongoing costs of running an SMSF were higher than the costs of their existing superannuation fund.
The corporate regulator also found Blazejczyk failed to make reasonable inquiries about his clients’ personal circumstances before giving advice and failed to conduct a reasonable investigation into alternative products before recommending the establishment of an SMSF.
He also recommended clients invest into a fund of which he was the investment manager and in statements of advice to clients failed to disclose his interests in entities related to him and the associated benefits and remuneration he would receive that could influence the advice he provided.
At the time of ASIC’s surveillance of advice provided by Blazejczyk, he was the owner and beneficiary of the SMSF administration service he recommended and was also an authorised representative, responsible manager and director of Australian financial services licensee Ballast Financial Management.
His banning will be recorded on ASIC’s Financial Advisers Register and Banned and Disqualified Register, but Blazejczyk has the right to appeal to the Administrative Appeals Tribunal for a review of the regulator’s decision.