Five-year ban for Coast financial adviser

A GOLD Coast financial adviser who provided “completely unsuitable” selfmanaged superannuation advice has been banned for five years by the corporate regulator.

ASIC found Burleigh-based Daniel John Renneberg failed to act in the best interests of his clients and placed them in a vulnerable financial position while he was an authorised representative of Austplan Pty Ltd.

On reviewing the files for 15 of Mr Renneberg’s clients, ASIC found that Mr Renneberg received referrals from GM Homes Australia to help their clients establish selfmanaged superannuation funds (SMSFs) to purchase an investment property.

ASIC found he had advised some clients to set up SMSFs with limited recourse loan arrangements that were “completely unsuitable” and “placed his clients in a vulnerable financial position” by failing to consider their circumstances.

Mr Renneberg also failed to give his clients statements of advice that set out the advice he provided and the information on which he based his advice.

ASIC Commissioner Danielle Press said self-managed superannuation was not for everyone and that using it to borrow money and buy a property was a high-risk strategy.

“ASIC will be looking very carefully at advisers who recommend this strategy and taking swift action where we see problems,” he said.

“Financial advisers must not rely solely on client direction when establishing an

SMSF.

“They must adequately demonstrate why an SMSF is appropriate and why it is in their clients’ best interests.”

Mr Renneberg has the right to seek a review of ASIC’s decision before the Administrative Appeals Tribunal.

Austplan’s Australian financial services licence was cancelled by agreement with ASIC on November 25.

Mr Renneberg was sole director when Austplan’s licence was cancelled.

From 2006-2010, Mr Renneberg was an authorised representative of Professional Investment Services.