The Australian Securities & Investments Commission announced that DOD Bookkeeping Pty Ltd (in liquidation), formerly Equiti Financial Services Pty Ltd (Equiti FS), has been penalised AUD 11,030,000 after the Federal Court found breaches of conflicted remuneration laws and inappropriate, template-based personal advice to clients to roll over superannuation into self-managed super funds (SMSFs) to buy property through a related entity. The Court found that, for 12 clients who gave evidence, the advice was “cookie cutter” and did not adequately consider individual circumstances or objectives. It also found Equiti FS paid AUD 130,250 in bonuses to three advisers, triggered when clients settled on property offered through Equiti Property Pty Ltd, and that these payments influenced the advice and breached conflicted remuneration rules; the judgments also noted clients were not given sufficient time to understand the advice and that the conduct was deliberate over several years. ASIC separately cancelled Equiti FS’s Australian financial services licence on 7 November 2024.
Australian Securities & Investments Commission 2025-04-24
Australian Securities & Investments Commission secures AUD 11.03 million penalty for Equiti FS over cookie-cutter SMSF advice and conflicted bonuses
The Australian Securities & Investments Commission (ASIC) announced that DOD Bookkeeping Pty Ltd, formerly Equiti Financial Services Pty Ltd, was fined AUD 11,030,000 for breaching conflicted remuneration laws and providing inappropriate, template-based personal advice. The court found the advice to roll over superannuation into self-managed super funds (SMSFs) for property purchases was generic and ignored individual circumstances. Equiti FS paid AUD 130,250 in bonuses to advisers, violating remuneration rules. ASIC also cancelled Equiti FS’s financial services licence on 7 November 2024.