According to ASIC, surveillance of Austplan found deficiencies in the financial services provided by a number of Austplan representatives, including their failure to act in the best interest of their clients in relation to establishing SMSFs.

Austplan also received client referrals from GM Homes (Australia) Pty Ltd, a building and mortgage business, which is not licensed to provide financial advice or any other financial service.  

As part of the cancellation, Austplan is required to comply with conditions, such as maintaining its current Professional Indemnity insurance policy until the cancellation takes effect and its membership of Australian Financial Complaints Authority (AFCA), until all consumer complaints have been resolved.

Austplan will also have to submit the required financial statements with ASIC and retain all materials relating to personal advice provided by its representatives.

“AFS licensees have an obligation to ensure that their representatives are adequately trained and competent to provide financial services that are in their clients’ best interest. ASIC will take action where we see licensees not properly supervising their representatives,” said ASIC deputy chair Peter Kell.

“SMSFs are not right for everyone. We encourage consumers to think carefully about investing in property and do their research before they set up an SMSF.”

ASIC is continuing to make enquiries in relation to the advice provided.

Last year, two authorised representatives of Austplan separately entered into enforceable undertakings with the corporate regulator, relating to “deficiencies” in financial advice provided around insurance products.