ASIC obtains compliance orders for SMSF case

Jenan Oslem Thorne, also known as Cenan Thorne or Cenan Dikman and an accountant with Saber Superannuation, first entered into a court enforceable undertaking (CEU) with ASIC on 13 February 2019, following an investigation that found she failed to act in her clients’ best interests and that she prioritised her own interests.

The undertaking prevented Ms Thorne from providing financial services for a period of three years.

The regulator decided to review Ms Thorne's advice when it discovered, during its investigation into Park Trent Properties Group, that she was receiving referrals in relation to establishing self-managed superannuation funds (SMSFs) from Park Trent.

ASIC reviewed advice provided by Ms Thorne when she was a representative of SMSF Advice, a wholly owned subsidiary of AMP, and concluded that she had advised some of her clients to establish SMSFs without taking their circumstances into account.

Furthermore, Ms Thorne had recommended that her accountancy practice, Saber Accountants, prepare the annual accounts and tax returns for the SMSF clients. This led ASIC to determine that Ms Thorne recommended the services of a related party to create extra revenue for herself.

The watchdog then commenced civil proceedings against Ms Thorne on 17 November last year, alleging that she took deliberate steps to avoid compliance with the CEU.

After the regulator filed the proceedings, Ms Thorne agreed to orders requiring compliance with the CEU.

The court also ordered that Ms Thorne correspond with relevant consumers to provide them with information regarding the CEU, including a copy of a relevant ASIC media release, and to notify the regulator of her compliance with the orders.

ASIC commissioner Danielle Press commented: “ASIC first took action in this matter because the law requires that financial advisers act in their clients’ best interests. Those providing financial services must not prioritise their own interests or simply implement client instructions.

“Individuals and organisations entering into court enforceable undertakings with ASIC have binding obligations that must be met to ensure compliance. ASIC will not hesitate to take action against those who don’t comply with their obligations.”

The court also ordered that Ms Thorne pay $16,529.78 for ASIC’s costs of the proceeding.