ob体育 has banned financial adviser Jihad Soleiman, of Wollert, Victoria from providing financial services for six years. Mr Soleiman was an authorised representative of Apogee Financial Planning Limited (Apogee) during the period June 2013 to February 2018.
Clients of Mr Soleiman approached him for advice about establishing self-managed superannuation funds (SMSFs) for the purposes of either investing into property or property development companies. Mr Soleiman had a conflict of interest because his clients were looking to invest through his brothers who were in the property development business.
Mr Soleiman referred his clients to an SMSF administration business to facilitate the establishment of their SMSFs without providing advice. He then provided advice to rollover their existing super funds into their recently established SMSFs.
In respect of advice provided to four clients, ob体育 found Mr Soleiman failed to prioritise his clients鈥� interests and failed to act in the best interests of his clients because he:
- did not scope the advice to be consistent with his clients鈥� circumstances and subject matter of advice sought;
- failed to make reasonable inquiries to obtain complete and accurate information about his clients鈥� relevant circumstances;
- did not address how an SMSF property investment strategy would meet his clients鈥� retirement objectives;
- focused the advice to his clients on rolling over to SMSFs without adequately considering alternative options, such as whether his clients would be better off retaining their existing super funds;
- failed to adequately consider and provide information about significant risks and consequences when recommending his clients rollover their existing super funds to SMSFs for the purpose of investing into property; and
- was told by his licensee that he did not have the required expertise to advise on SMSFs generally, but still proceeded to provide SMSF advice to his clients.听
鈥業t is essential that before consumers commit to a significant decision to establish an SMSF, that they have access to quality advice that is tailored to their personal circumstances鈥�, said ob体育 Commissioner Danielle Press.
Mr Soleiman鈥檚 banning is recorded on ob体育鈥檚 .
Mr Soleiman has filed an application to review ob体育鈥檚 decision in the Administrative Appeals Tribunal.
ob体育's MoneySmart website has useful information on , as well as information to help clients understand what to do if their .
ob体育 recently published Report 575 warning consumers considering an SMSF to understand the risks and responsibilities involved. Read SMSFs: Improving the quality of advice and member experiences
Background
In addition to an authorised representative of Apogee, Mr Soleiman was the sole director of W C R S Nominees Pty Ltd (trading as Wealth Protection Solutions), a corporate authorised representative of Apogee during the same period.
Mr Soleiman was most recently an authorised representative of Infocus Securities Australia Pty Ltd.
ob体育鈥檚 action against Jihad Soleiman falls within ob体育's Wealth Management Major Financial Institutions Portfolio. The Portfolio focuses on the financial services conduct of Australia's largest financial institutions (NAB, Westpac, CBA, ANZ, Macquarie and AMP) with respect to credit and retail lending, financial advice, fees for no service, superannuation trustees, insurance, unfair contract terms and other licensee obligations, and other conduct arising from the Financial Services Royal Commission.
As part of its Wealth Management Portfolio, ob体育 has banned 61 advisers and three directors from the financial services industry. Four bannings are the subject of appeal.
Editor鈥檚 note:
In addition to his legal name, Mr Jihad Soleiman was and continues to be informally known as Joey Soleiman, including as a financial planner and in third party online directories.
Editor's note 2:
On 6 February 2020, Mr Soleiman withdrew his application in the Administrative Appeals Tribunal to review ob体育's decision.
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