The court found that regarding 12 clients who gave evidence to the court, the advice provided was "cookie cutter" and failed to take into account each client’s individual circumstances or objectives.

The court also found that the bonuses paid to the three advisers, which were paid when the clients settled on property offered through Equiti Property, influenced the advice they provided and breached conflicted remuneration laws.

“Misconduct exploiting superannuation savings is an ASIC enforcement priority. In this case the Court found bonuses paid to advisors influenced the advice they provided, resulting in poor financial outcomes for the consumers involved,” ASIC Deputy Chair Sarah Court said.

“Financial services licensees who employ advisers to provide personal financial advice need to ensure that they place their clients at the forefront. The size of today’s penalty demonstrates the seriousness of this misconduct.”

In his judgments, Justice Goodman observed that “little or no heed was paid to the particular circumstances of the clients”, with clients not being given sufficient time to understand the advice given to the. The advice, he said, was clearly focussed on “manoeuvring the clients into property purchases through SMSFs”.

His Honour added, “The contravening conduct was plainly deliberate and extended over a period of several years”.

ASIC cancelled Equiti FS’s Australian financial services licence on 7 November 2024.