The Australian Securities & Investments Commission (ASIC) has sought leave to commence Federal Court proceedings against MWL Financial Services Pty Ltd (administrators appointed), its former director Nicholas Maikousis and lead generator Imperial Capital Group Australia Pty Ltd, over alleged failures in the referral and provision of financial advice that directed clients’ superannuation into the Shield Master Fund. ASIC proposes to allege that between May 2022 and February 2024 nine MWL representatives advised at least 556 clients to invest about AUD 114 million of superannuation into Shield, with MWL failing to take reasonable steps to ensure best-interests compliance and appropriate advice for superannuation rollovers into a pre-selected investment option. The case would also allege breaches of the obligation to provide services efficiently, honestly and fairly, inadequate conflict management arrangements, misleading representations by Imperial about the standard, quality and benefits of MWL’s services, and involvement by Mr Maikousis in MWL’s alleged contraventions. MWL received advice fees for Statements of Advice recommending Shield, and Imperial (through a related entity) received about AUD 12.8 million in payments from entities associated with Shield for referrals and promotion. Because MWL is in administration, ASIC’s application is subject to Court approval or the administrators’ consent. If allowed to proceed, ASIC will seek declarations and civil penalties against all defendants and orders disqualifying Mr Maikousis from managing corporations; MWL clients considering a complaint to the Australian Financial Complaints Authority must lodge by 25 August 2026.

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