Interprac Financial Planning to Pay $150,000 After Misleading and Deceptive Conduct

Interprac Financial Planning has been found guilty of misleading and deceptive conduct, leading to a compensation payout of $150,000.

Complaint

This complaint is about the conduct of Mr. L while he was an authorized representative of Interprac Financial Planning. Ms. J is the director of the corporate trustee of a self-managed superannuation fund (the complainant SMSF). She says, Mr. L:

  • inappropriately recommended the SMSF invest in two wholesale property unit trusts in October 2015, September 2016, and August 2017
  • wrongfully engaged in discretionary trading of SMSF’s shares from October 2015.

She has also raised concerns about Mr. L providing her with false portfolio valuations. The financial firm admits Mr. L provided this false information but says he was entitled to rely on wholesale client certificates her accountant provided and denies the discretionary trading allegation.

Issues and key findings

AFCA determined that Mr. L’s failure to disclose to Ms. J the implications of the wholesale client classification was misleading and deceptive conduct. They also determined that Mr. L engaged in discretionary trading of the SMSF’s shares without authority.

To compensate the complainant for the losses incurred, AFCA determined it fair for the financial firm to pay compensation of $152,612.74 to the complainant SMSF plus interest. The firm must also pay $5,000 as a contribution to the SMSF’s legal costs.

Determination

The determination is in favor of the complainant. If the determination is accepted the financial firm must, within 28 days, pay:

  • the complainant SMSF $152,612.74 compensation with interest equal to the change in the consumer price index from 1 July 2019 to the date of payment
  • make a $5,000 contribution toward the complainant’s legal costs upon presentation of a paid invoice from the complainant‟s legal representative. No interest is payable on this amount.

Legal Help After Bad Financial Advice

If you believe you’ve received bad financial advice and would like to discuss your experience with us, reach out to our expert legal team. We are committed to ensuring our clients receive the best possible advice and guidance on their situation, especially in financial matters. You can contact us online, call us at 1300 433 533 or email us at enquiry@fdlegal.com.au.

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