Gold Coast-linked financial adviser Timothy Shapter banned from industry along with firm Smart Solutions Group

A financial adviser whose firm operated a Gold Coast office has been banned for seven years after advising clients to move their superannuation and insurance into high fee-paying products.

A FINANCIAL adviser whose firm operated a Broadbeach office has been banned for seven years after advising clients to move their superannuation and insurance into high fee-paying products.

Timothy Shapter, 49, of Rothwell, Moreton Bay, was also found by corporate regulator the Australian Securities and Investment Commission to have engaged a third party to cold call potential clients and then with limited information prepare statements of advice on the same day.

“ASIC found that Mr Shapter could not have properly inquired about, or considered, his clients’ needs and circumstances, their reasons for wanting advice, or the most suitable options for their circumstances within such a short time frame,” ASIC said in a statement.

ASIC has banned Mr Shapter from providing financial services for seven years and cancelled the financial services licence of Smart Solutions Group (Aust) Pty Ltd as of January 13.

Financial adviser Tim Shapter has been banned from the industry for seven years.

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Mr Shapter was the director and responsible manager of Smart Solutions, which had offices in both Brisbane and Broadbeach.

The corporate regulator said a review found he provided inappropriate advice that was not in his clients’ best interest and put his own fees above the financial interests of his customers.

“The review found that Mr Shapter provided inappropriate switching advice by recommending that clients switch out of their existing superannuation and insurance products, and into higher fee paying products,” ASIC said.

“Mr Shapter also used a ‘layered advice’ strategy, whereby he provided his clients with a superannuation statement of advice first, followed by an insurance statement of advice a few weeks later.”

ASIC said the process confused clients and resulted in some losing insurance or being excluded from policies.

Mr Shapter also issued multiple advice statements to generate more fees.

The regulator said it cancelled the Smart Solutions’ licence because it failed to monitor and supervise its representatives adequately and provide competent services.

It said as a result some of its representatives were permitted to audit their own files and provided false information in connection with anti-money laundering requirements by falsely declaring they had sighted identity documents.

ASIC said financial advisers have an obligation to act in the best interests of clients when providing personal advice.

Mr Shapter’s banning will be recorded on ASIC’s Financial Advisers Register and the Banned and Disqualified Persons Register.

Mr Shapter and Smart Solutions have the right to seek a review of ASIC’s decision at the Administrative Appeals Tribunal.