ASIC has banned two advisers from the same advice firm for giving clients inappropriate advice that was not in their best interests.
Isaac Jacob McQueen, who worked at MWL Financial Services from 31 October 2022 to 9 June 2023, was banned for four years, while Matthew Simon Bradley was banned for eight years, having worked at MWL from 11 October 2017 to 27 December 2021, and then from 28 March 2022.
McQueen was based in Queensland, while Bradley was in Sydney.
ASIC alleged they gave inappropriate advice to certain clients which was not in their best interests when they recommended they invest most of their superannuation into the Shield Master Fund.
Both individuals recommended clients invested in the High Growth class or Growth class, which were high-risk investments, and Bradley also recommended clients invest in the Balanced option, which was a medium-risk offering.
ASIC understands that, since February 2022, funds totalling more than $480 million have been invested in Shield by at least 5,800 consumers who accessed Shield primarily through superannuation platforms.
The corporate regulator is investigating the scheme and its responsible entity Keystone Asset Management, its directors and officers, the role of superannuation trustees Macquarie Investment Management and Equity Trustees Superannuation, as well as financial advisers who recommended the product and lead generators.
It is understood potential investors were called by lead generators and referred to personal financial advice providers, who advised investors to roll their superannuation assets into a retail choice superannuation fund and then to invest part or all of their superannuation into Shield.
In the case of Bradley, ASIC also stated that his statement of advice to certain clients included false and misleading statements which implied clients would enjoy better returns if their superannuation were invested into Shield, including projection tables and statements for client’s superannuation that did not have reasonable grounds; and representations that Shield had a higher performing track record against other super funds when Shield had only been in existence for a short period.
As a result, ASIC has banned both men from providing financial services, controlling an entity that carries on a financial services business or performing any function involved in the carrying on of a financial services business.
Bradley was also believed to be not a fit and proper person, not adequately trained or competent, and is likely to contravene a financial services law.
The banning orders took effect from 17 June for McQueen, and from 3 July for Bradley.
The bannings have been recorded on the Banned and Disqualified Register, and they have the right to appeal the decision to the Administrative Review Tribunal.
