The Australian Securities and Investments Commission has banned Wayne Blazejczyk, a financial advisor from Perth, from providing financial services for five years for failing to meet his obligations to act in his customers' best interests when giving them advice about self-managed super funds (SMSFs).

This harks back to the time when Blazejczyk was an authorised representative, responsible manager and director of Ballast Financial Management Pty Ltd.

ASIC found that Blazejczyk had recommended that his clients set up SMSFs with low superannuation balances. As a result of this advice, they exposed themselves to the possibility of financial harm because the continuing SMSF-related costs were higher than the costs of their existing superannuation funds. He failed to make reasonable enquiries to ascertain his clients’ personal circumstances and did not conduct a reasonable investigation of alternative products before making his recommendations.

In statements of advice to his clients, Blazejczyk also failed to disclose his interests in various entities. Advisors are obliged by law to prioritise their clients’ interests and to comply with the best interests duty when providing personal advice.