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SMSF adviser breaches existing ban order

SMSF adviser banning order

A former SMSF adviser based in Queensland has faced court for allegedly breaching a seven-year ban related to a best interest duty failure.

A former Queensland-based financial adviser who provided SMSF advice has appeared in court charged with breaching a seven-year banning order that commenced in late 2017.

Lawrence Toledo of Coorparoo, Brisbane, appeared in Brisbane Magistrates Court on 27 August charged with three breaches of his financial services banning order following an investigation by the Australian Securities and Investments Commission (ASIC).

ASIC alleged Toledo provided an SMSF with financial advice to invest in Premier Realty Group and failed to disclose to the fund and its trustees that his partner at the time was the sole director of Premier Realty Group.

Specifically, the corporate watchdog alleged he breached the order by providing financial advice to an SMSF to invest in Premier Realty Group, arranging the sale of a financial product, that being 70,000 shares in Premier Realty Group for $70,000, to the SMSF, and arranging a second sale of a financial product – 14,000 additional shares in Premier Realty Group, costing $14,000 – to the same fund.

The maximum penalty for each charge of engaging in conduct that breached Toledo’s financial services banning order is $5250 or imprisonment for six months, or both.

Toledo was banned in September 2017 after it was found he failed to act in his clients’ best interest while providing advice to clients establishing an SMSF to purchase properties. ASIC’s original investigation was based on a review of Toledo’s client files while he was an authorised representative of Sentinel Private Wealth.

His initial ban until 5 September 2024 is recorded on the Financial Advisers Register and the Banned and Disqualified Persons Register.

The current matter has been adjourned for mention on 1 October and is being prosecuted by the Commonwealth Director of Public Prosecutions after a referral from ASIC.

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