The Australian Securities & Investments Commission (ASIC) has obtained interim Federal Court orders restraining Ferras Merhi from operating in the financial services industry, following ASIC allegations of unconscionable conduct, failures to act in clients’ best interests, conflicted advice and defective statements of advice while receiving millions of dollars. The action sits within ASIC’s ongoing investigations into the Shield Master Fund and First Guardian Master Fund. The interim injunctions immediately prevent Mr Merhi, including via servants, agents or employees, from carrying on any business related to financial products or financial services, providing financial product advice, dealing in financial products, or marketing superannuation or managed investment scheme products. Justice Moshinsky found the public interest required the injunctions and identified an appreciable risk of continued contraventions of the Corporations Act unless restrained. The Court also appointed a receiver to identify all assets and liabilities of Mr Merhi and report to the Court within 90 days; his assets have been frozen since February 2025 and he has been restrained from leaving Australia since July 2025 (until 12 December 2025, or further order). Provisional liquidators were appointed to Venture Egg Financial Services Pty Ltd and United Financial Advice Pty Ltd, with a 28-day deadline to report on financial position, solvency, likely creditor returns and any suspected officer misconduct. ASIC alleges that between 2020 and 2024 clients were advised to invest around AUD 296 million of superannuation into First Guardian and around AUD 230 million into Shield, generating nearly AUD 18 million in upfront advice fees and more than AUD 19 million in payments from entities associated with First Guardian for marketing. The interim freezing orders remain in place until 12 December 2025, and ASIC’s investigations into matters connected to Shield and First Guardian are continuing. ASIC also noted that, following the cancellation of Financial Services Group Australia Pty Ltd’s Australian Financial Services Licence effective 7 June 2025, the firm must remain a member of the Australian Financial Complaints Authority until 4 June 2026 for complaint eligibility.
Australian Securities & Investments Commission 2025-10-27
Australian Securities & Investments Commission secures interim Federal Court orders banning Ferras Merhi from financial services and appointing a receiver
The Australian Securities & Investments Commission (ASIC) secured interim Federal Court orders against Ferras Merhi, restraining him from financial services activities due to allegations of unconscionable conduct and conflicted advice. The court appointed a receiver to assess Merhi's assets, frozen since February 2025, and imposed travel restrictions until December 2025. ASIC's ongoing investigations involve significant investments into First Guardian and Shield Master Funds, with provisional liquidators appointed to related entities.