ASIC has cancelled the Australian Financial Services (AFS) licence of Adelaide-based financial services provider, Simeone Pty Ltd (Simeone), effective 28 February 2022.
ASIC cancelled the licence because Simeone failed to ensure its representatives complied with financial services laws.
Simeone's director, authorised representative, key person and responsible manager, Antonio Simeone, was found to have engaged in conduct that was misleading or deceptive by recommending and facilitating an illegal early release of superannuation, from Self-Managed Superannuation Funds (SMSF).
Mr Simeone recommended that clients, who were under financial pressure, roll over their APRA regulated superannuation fund to a SMSF and invest in a related company of Mr Simeone called Administrative Incentivised Management Systems Pty Ltd (ACN 603 650 139) (AIMS). Mr Simeone then allowed the clients to borrow some of what was invested in AIMS, on the understanding there was no obligation to repay what was lent.
Mr Simeone's clients relied on his advice and assumed that the investing of superannuation in AIMS, and the receipt of loans from AIMS, was legally permissible and appropriate. The strategy Mr Simeone recommended, facilitated, and allowed for his clients, resulted in his clients breaching the restrictions on the early release of superannuation benefits, and their SMSFs not satisfying the Sole Purpose Test.
ASIC also found that Simeone failed to make adequate arrangements to manage conflicts of interest, take reasonable steps to ensure that its representatives were adequately trained and failed to do all things necessary to ensure that the financial services covered by their licence, were provided efficiently, honesty and fairly.
In addition to cancelling Simeone's AFS licence, ASIC has banned Mr Simeone from providing financial services for five years (refer: 22-202MR).
Background
Simeone held AFS licence no. 247480 since 4 June 1986.
Simeone sought a stay and review of ASIC's decision by the Administrative Appeals Tribunal (AAT) on 15 March 2022. Simone also sought an order that ASIC's decision to be kept confidential.
On 28 June 2022, the AAT ordered that there should be no stay and that neither the licence cancellation nor the appeal should be confidential. ASIC's decision to cancel the Simeone AFS licence remains under review at the AAT.
