The Australian Securities and Investments Commission has commenced civil penalty proceedings against former financial adviser Osama Saad, alleging he participated in schemes to avoid conflicted remuneration laws and breached his best interest obligations. The case concerns advice that led hundreds of retail clients to invest retirement savings in the First Guardian Master Fund, which later collapsed. ASIC alleges entities controlled by Saad received around AUD 34 million from entities connected to First Guardian and the Shield Master Fund. Some funds allegedly benefited Saad and his associates, while other amounts financed marketing and lead generation businesses that referred thousands of clients to advice firms recommending First Guardian, Shield or both. Between February and December 2021, Saad allegedly advised 217 clients to roll over more than AUD 25 million of superannuation into First Guardian through Venture Egg. ASIC claims the advice was inappropriate, disregarded clients’ circumstances and needs, and prioritized Saad’s interests. ASIC is seeking declarations, financial penalties, an order restraining Saad from providing financial services and disqualification from managing corporations. The case is the 17th proceeding connected with its investigations into First Guardian and Shield, with further enforcement action expected.
Australian Securities and Investments Commission sues former adviser over alleged AUD 34 million conflicted remuneration schemes and advice failures
The Australian Securities and Investments Commission has sued former adviser Osama Saad over alleged schemes to avoid conflicted remuneration laws and advice that moved more than AUD 25 million of client superannuation into the collapsed First Guardian Master Fund. ASIC alleges Saad’s entities received around AUD 34 million from entities linked to First Guardian and Shield. It is seeking penalties, a financial services restraint and corporate management disqualification.