Financial Wisdom required by AFCA to pay client $221,835 for back SMSF Advice

In a win for investors who received bad financial advice, a client of Financial Wisdom has won over $200,000 in compensation for bad advice to use a Self Managed Superannuation Fund and withdraw their industry super accounts to invest into an unlisted property trust.

In a win for investors who received bad financial advice, a client of Financial Wisdom has won over $200,000 in compensation for bad advice to use a Self Managed Superannuation Fund and withdraw their industry super accounts to invest into an unlisted property trust.

 

AFCA heard that the Financial Wisdom advisor recommended the client by a Statement of Advice (SOA) to withdraw dated 15 December 2014 to rollover $208,000 from Ms D‟s industry super account and $57,000 from Mr I‟s industry super account to the existing SMSF.  During a seminar the advisor told the client that an investment in the T&G property trust would be a “sound investment” as it would help the client achieve a goal of buying investment properties.

 

In making the decision AFCA held that the advice to invest into the T&G property trust was not in the client’s best interests.  The advice resulted in the client’s SMSF being over exposed to an unlisted investment which did not meet their goals and objectives in respect of an investment and resulted in losses.  In making the decision AFCA also commented that they had concerns about the Financial Wisdom advisor recommending the T&G property trust to retail clients (such as the complainants in this case) because it is likely the entity operating the trust was in the business of offering managed investment schemes and therefore was required to only make offers on scheme interests via a product disclosure statement to retail clients.

 

Clients of the T&G Property Trust can make claims

 

If you were advised by a financial advisor to invest into the T&G Property Trust you could also have a claim.  FD Legal can help you recover compensation for bad financial advice.  We are committed to ensuring clients receive the best possible advice and guidance on their situation, especially in SMSF advice cases.  You can contact us online, call us on 1800 433 533 or email us at enquiry@fdlegal.com.au

 

https://service02.afca.org.au/CaseFiles/FOSSIC/857525.pdf


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