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In October 2019, the Australian Securities and Investments Commission (ASIC) imposed a 6 year ban on financial adviser, Jihad (or Joey) Soleiman, preventing Mr Soleiman from providing financial services during the period of the ban. The ban follows ASIC's finding that Mr Soleiman failed to, among other things, prioritise his clients' interests and act in their best interests.
Alisha Shamim, Maddocks LawyersMr Soleiman's conduct
Mr Soleiman, a financial adviser from Wollert, Victoria, was an authorised representative of Apogee Financial Planning Limited during the period June 2013 to February 2019.
| Mr Soleiman's conduct | ASIC's finding |
|---|---|
Clients approached Mr Soleiman for advice about establishing self-managed super funds (SMSFs) for the purpose of investing in property or property development companies. The clients were looking to invest through Mr Soleiman's brothers who were in the property development business. |
Conflict of interest between Mr Soleiman's interests and that of his clients'. |
|
In relation to advice provided to 4 clients, Mr Soleiman:
|
Mr Soleiman failed to prioritise his clients' interests and act in their best interests. |
Implications and learnings
As a result, ASIC banned Mr Soleiman from providing financial advice for a period of 6 years, commencing 7 October 2019. This ban is recorded on ASIC's register of financial advisers. Mr Soleiman has filed an application to review ASIC's decision in the Administrative Appeals Tribunal.
Clients or prospective clients of financial advisers should:
- be wary of conduct similar to that of Mr Soleiman's, namely advisors who recommend a pre-determined course of action - rolling super savings over into an SMSF to invest in property - without taking into account (or inquiring about) the client's existing super arrangements (including insurance policies), retirement plans and needs, nor the appropriateness of large property investments for those clients; and
- remember the importance of obtaining quality SMSF advice that is tailored to their specific circumstances.
More information from Maddocks
For more information, contact Maddocks on (03) 9258 3555 and ask to speak to a member of the Commercial team.
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Lawyer in Profile
Senior Associate
+61 3 9258 3819
jack.coventry@maddocks.com.au
Qualifications: BA (Philosophy), Monash University, JD (Juris Doctor), University of Melbourne
Jack is a member of Maddocks Commercial team. He advises a range of corporate and private clients on:
- M&A transactions,
- corporate reorganisations, and
- legal and tax structuring.
Jack acts for clients on both buy-side and sell-side and specialises in founder-owned businesses and Australian subsidiaries of multi-national companies. He works across a number of sectors including information technology, professional services, and property development and management including land lease.
Jack's structuring work includes assisting multinationals to structure Australian operations, listed companies to achieve regulatory compliance / optimisation and providing general tax structuring. He has also represented clients in tax controversies including before the General Anti-Avoidance Review Panel (GAAR Panel) and the Federal Court of Australia.
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