DOD Bookkeeping, formerly known as Equiti Financial Services, has been penalised $11 million by the Australian Federal Court for breaching conflicted remuneration laws and providing inappropriate financial advice.
The penalty follows findings that Equiti FS paid $130,250 in bonuses to three financial advisers who encouraged clients to roll over their superannuation into self-managed super funds to purchase property through a related entity, Equiti Property.
The Court determined that advice given to at least 12 clients was "cookie cutter," failing to consider their individual financial circumstances and goals.
The bonuses were paid only when clients proceeded with property purchases through Equiti Property, which the Court found influenced the advisers’ recommendations and breached the legal requirements for unbiased financial advice.
ASIC Deputy Chair Sarah Court said the misconduct targeted superannuation savings.
"The Court found bonuses paid to advisers influenced the advice they provided, resulting in poor financial outcomes for the consumers involved," she stated, adding that financial services licensees must ensure client interests come first.
Justice Goodman described the conduct as "deliberate" and "extended over several years."
He noted that clients were not given adequate time to understand the advice and were instead steered toward SMSF property purchases without due consideration.
ASIC cancelled Equiti FS' financial services licence on Nov. 7, 2024.