Financial Advisor, Sean Phillip Lewis, banned for Misleading SMSF advice

A hunter-valley-based financial adviser has been banned for five years by the corporate regulator, for inappropriate valuation of limited recourse borrowing arrangements suitable for his clients.

Sean Philip Lewis was an authorised representative for Spectrum Wealth Advisers from December 2013 to June 2018. He was audited by the ASIC and found guilty of misleading his clients.

The NSW-based advisor was known to provide insurance advice and advised clients to use LRBA to endow purchases of property through SMSF.

The ASIC made a statement to Lewis with regards to the usage of SMSF and borrowed funds to invest property, as it is highly unprofessional and an inappropriate strategy to use for his clients.

Lewis was also accused by the ASIC of not investigating or offering any substitutive investment approaches to his clients that may have resulted in better diversification of risks.

The ASIC stated that “Mr Lewis [took] the greatest advantage of his clients and objectives.” The ASIC further stated that “when providing insurance advice, Mr Lewis intentionally prioritised his own benefits over that of his clients. He ensured his commission is generated, irrespective of whether the endorsed products were appropriate for his clients.”

Originally Published by Adrian Flores on Accounts Daily