ASIC bans adviser Andrew Rankin over SMSF advice

ASIC has banned Gold Coast-based financial adviser Andrew Rankin from providing financial services, controlling an entity that carries on a financial services business, or performing any function involved in such a business for four years. 

The banning order took effect from Aug. 14, with Rankin retaining the right to appeal the decision to the Administrative Review Tribunal. 

Rankin was an authorised representative of Next Generation Advice from Sept. 13, 2021, to Nov. 11, 2022. 

Failures in client advice 

ASIC found that Rankin failed to act in the best interests of a number of his clients and gave inappropriate advice while authorised to provide financial advice by Next Generation Advice (in liquidation). 

Rankin was found to have recommended clients set up an SMSF and invest most of their retirement savings into the Global Capital Property Fund (in liquidation) and the Pivotal Diversified Fund. 

ASIC findings 

In a review of the advice provided, ASIC determined Rankin failed to: 

• identify clients’ objectives and needs by accepting requests to establish SMSFs and roll over their existing superannuation into the new funds 
• identify the subject matter of advice 
• conduct a reasonable investigation of the financial products that might meet their needs 

ASIC also found it was not reasonable to conclude the advice was appropriate, even if he had satisfied the duty to act in the clients’ best interests, because: 

• GCPF and Pivotal were both speculative, illiquid investments with no historical return data 
• the advice placed clients in more complex and onerous SMSF environments compared to their previous APRA-regulated fund 
• the advice resulted in significant fee increases 

ASIC also determined that Rankin’s statements of advice included projections that were misleading and deceptive. 

Conflict of interest concerns 

Clients were referred to Rankin after completing a “superannuation health check” with another authorised representative of Next Generation Advice.  

ASIC found he reasonably ought to have known there was a conflict of interest and that he jeopardised client retirement savings by facilitating the transfer of most of their savings from APRA-regulated funds to highly speculative and illiquid investments in SMSFs. 

Regulatory action and guidance 

ASIC noted that it had already taken enforcement action against the products involved: in June 2024 the Federal Court froze the assets of GCPF, and in October 2024 ordered it wound up, appointing liquidators from FTI Consulting. ASIC had also issued a stop order on Pivotal Diversified Fund in January 2023, preventing it from being offered to retail clients. 

ASIC reminded advisers of their obligations under its guidance Super switching advice – complying with your obligations (INFO 182), which highlights common compliance failures in super switching recommendations. 

In addition, ASIC recently issued a consumer alert warning about the risks of moving retirement savings into complex and risky schemes (25-120MR), urging Australians to “be super smart” and directing them to its MoneySmart campaign page. 

The banning has been recorded on ASIC’s Financial Advisers Register and the Banned and Disqualified Register. ASIC’s MoneySmart website provides information for consumers impacted by banned advisers. 

Read the ASIC media release for more information. 

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