The Australian Financial Complaints Authority (AFCA) has published a short video explaining a lead decision involving MWL Financial Services, stemming from complaints about advice to establish a self-managed super fund (SMSF) and invest most of the transferred superannuation into the Shield Master Fund. An AFCA panel found the adviser failed to act in the complainants’ best interests and determined compensation outcomes for inappropriate advice and related insurance loss. The complainants said they were cold called, encouraged to have their super reviewed, and referred to an adviser who recommended setting up an SMSF and investing in the Shield Master Fund. MWL Financial Services did not dispute that the Shield Master Fund recommendation was inappropriate, argued losses could not be calculated because the fund was frozen, and contended the trauma insurance issue was not its responsibility. The panel found the advice did not address the complainants’ needs, included misleading information about the Shield Master Fund and their existing super, moved them into a much riskier strategy without justification, and did not conduct checks on their suitability to run an SMSF. The firm was also found 50% responsible for one complainant’s loss of trauma insurance, and the decision awarded almost AUD 96,000 in compensation, up to AUD 5,000 to wind up the SMSF, and 50% of the lost trauma insurance benefit. AFCA indicated it will continue to publish videos explaining lead decisions and other updates relating to the Shield and First Guardian collapse in the coming weeks. It noted that while lead decisions provide guidance for similar complaints, each complaint is investigated and determined on its own circumstances.

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