Australia'sfinancial regulator shut down MWL Financial Services and banned its managingdirector for a decade following what officials described as serious failures inhow the firm handled client investments worth $155 million.ASIC Cancels License ofFirm in $480M Fund CaseTheAustralian Securities and Investments Commission (ASIC) cancelled MWL's licenseand imposed a 10-year ban on Nicholas Maikousis, the firm's managing director,over conduct related to the Shield Master Fund.ASIC'sinvestigation found MWL operated what it called a "low cost adviceproject" from 2021, working with telemarketers to funnel clientsuperannuation money into Shield. More than 750 clients investedcollectively in the fund between September 2021 and February 2024.Theregulator discovered MWL provided template advice documents to itsadvisers that contained misleading information about Shield's past performance.The firm also failed to properly assess the fund before adding it to itsapproved investment list."Clientswho seek advice from financial advisers should be able to trust that the advicethey receive will be in their best interest," said Deputy Chairwoman SarahCourt. "Failing to manage conflicts has the potential to cause consumersto be given financial product advice that may not suit their needs."Hidden Incentives andConflictsASIC foundMWL had undisclosed bonus arrangements with financial advisers who recommendedShield to clients. The firm also failed to tell clients about its relationshipswith lead generators in some advice documents and financial services guides.Theregulator determined Maikousis was not just responsible for establishing theadvice project but was "the driving force behind it." He served onthe investment committee that approved Shield and "did not have anadequate appreciation for a financial services business' fundamentalobligations to its clients," according to ASIC.You may also like: Australian Watchdog Shuts Down 330 Fake Celebrity Investment Scam Sites This YearCompliance Manager AlsoBannedYesterday(Wednesday), ASIC also banned Robert John Tohill, MWL's compliance managerand responsible manager, for five years. Tohill was involved in approvingtemplate advice documents containing false information about Shield'sperformance and failed in his oversight duties.Theenforcement actions are part of ASIC's broader investigation into Shield, whichhas attracted more than $480 million from at least 5,800 consumerssince February 2022. Most investors accessed the fund through superannuationplatforms managed by Macquarie Investment Management and Equity TrusteesSuperannuation.Wider InvestigationContinuesASICpreviously banned four other MWL financial advisers connected to Shield adviceand halted new investments in the fund in February 2024. The regulator secureda court order in June 2024 to freeze Shield's assets while investigationscontinue.The agencyis examining multiple parties connected to Shield, including Keystone AssetManagement (the fund's responsible entity, now in liquidation), superannuationtrustees, other financial advisers, and lead generators who referred clients.In August, ASIClaunched civil proceedings against Equity Trustees, alleging thesuperannuation trustee failed in its due diligence responsibilities regardingShield.Client Protection MeasuresMWL mustremain a member of the Australian Financial Complaints Authority until August25, 2026, giving affected clients time to lodge complaints. The firm must alsomaintain professional indemnity insurance during this period.Both MWLand Maikousis can appeal ASIC's decisions to the Administrative ReviewTribunal. The bans will appear on ASIC's public registers.ASICadvises anyone who received advice from MWL and has concerns to contact theAustralian Financial Complaints Authority by calling or filing a complaintonline. The service is free for consumers.This article was written by Damian Chmiel at www.financemagnates.com.