The regulator found that the NSW-based adviser advised most of his clients to use an LRBA to fund the purchase of real property through an SMSF, and also gave insurance advice to all clients.

When providing this advice, ASIC said Mr Lewis did not professionally and independently assess whether using an SMSF and borrowed funds to invest in property was an appropriate strategy for each of his clients.

The corporate regulator also noted that Mr Lewis did not adequately investigate or offer any alternative investment strategies that may have provided greater diversification of risks.

“Mr Lewis failed to comply with financial services laws, including by failing to provide advice that was in the best interests of his clients and failing to provide advice that was appropriate for his clients’ objectives,” ASIC said.

“When providing insurance advice, Mr Lewis prioritised his own interests over that of his clients. He provided insurance advice that would generate large commissions for himself, regardless of whether the recommended products were appropriate for his clients.”