ASIC bans Adelaide adviser for five years

The Australian Securities and Investments Commission (ASIC) has banned Adelaide-based financial adviser, Antonio Simeone, from providing financial services for five years for misleading and deceptive conduct.

ASIC has found that, Simeone who is director, authorised representative (AR) and key person at Simeone Pty Ltd and a director of administrative Incentivised Management Company, had recommended and facilitated the illegal early release of superannuation and recommended to clients who were under financial pressure to roll over their APRA regulated superannuation fund to a self-managed superannuation fund and invest in AIMS.

Following this, Simone allowed clients to borrow some of what was invested in AIMS, on the understanding there was no obligation to repay what was lent.

As a result, Simeone’s clients assumed that the investing of superannuation in AIMS, and the receipt of loans from AIMS, was legally permissible and appropriate. This strategy led clients to breach the restrictions on the early release of superannuation benefits, and their SMSF not satisfying the requirement that it meet the Sole Purpose Test.

In addition to banning Simeone from providing financial services for five years, ASIC has cancelled the Australian financial services licence (AFSL) of Simeone Pty Ltd.

The decision to ban Simeone remains under review at the Administrative Appeals Tribunal (AAT).