On 27 August 2021, Mr Lawrence Toledo of Coorparoo, Queensland, appeared in the Brisbane Magistrates Court charged with three breaches of a financial services banning order.

Mr Toledo, a former financial adviser, was banned from providing financial services for seven years after ASIC found he had failed to act in the best interests of his clients when advising them to establish a self-managed superannuation fund (SMSF) to purchase properties (17-304MR).

ASIC alleges Mr Toledo breached the existing banning order by:

• providing financial advice to a SMSF to invest in Premier Realty Group Pty Ltd;
• arranging the sale of a financial product (70,000 shares in Premier Realty Group for $70,000) to the SMSF; and
• arranging a second sale of financial products (14,000 additional shares in Premier Realty Group, costing $14,000) to the same SMSF.

Mr Toledo’s partner at the time was the sole director of Premier Realty Group. This information was not disclosed to the SMSF and its trustees.

The maximum penalty for each charge of engaging in conduct in breach of a financial services banning order is $5,250 or imprisonment for six months, or both.

The matter is being prosecuted by the Commonwealth Director of Public Prosecutions following a referral from ASIC and has been adjourned for mention on 1 October 2021.

Background

Mr Toledo’s banning is recorded on the Financial Advisers Register and the Banned and Disqualified Persons Register. This ban expires on 5 September 2024.

ASIC’s Moneysmart website has useful information for consumers whose advisers have been banned.

ASIC's Information Sheets INFO 205 and INFO 206 provide guidance on disclosure of risks and costs for Australian financial services licensees and their representatives who provide personal advice to retail clients about SMSFs.

Editor's note:

The matter was heard at the Brisbane Magistrates Court on 1 October 2021. The matter is next listed for mention on 29 October 2021.

Editor's note 2:

The matter has been adjourned until 19 November 2021. 

Editor's note 3:

On 19 November 2021, the matter was adjourned until 21 January 2022. 

Editor's note 4:

On 21 January 2021, the matter was adjourned until 1 April 2022.

Editor's note 5:

The matter was brought forward for mention on 18 March 2022.

Editor's note 6:

On 18 March 2022, the matter was adjourned until 29 April 2022.

Editor's note 7:

The matter went before the Brisbane Magistrates Court on 29 April 2022, where a guilty plea was indicated for the purpose of setting it down for sentence. The matter has been adjourned for a sentence date on 17 June 2022.