ASIC has cancelled the AFSL of MWL Financial Services, with the group’s director and compliance manager also receiving specific bans related to the Shield Master Fund.
ASIC found MWL operated what it called a “low-cost advice project” from 2021 to receive referrals from telemarketers/lead generators and to recommend clients invest their superannuation in Shield.
Between September 2021 and February 2024, MWL recommended Shield to more than 750 clients who collectively invested $155 million.
ASIC accused MWL of failing to take reasonable steps to ensure its advisers provided advice that was appropriate and in the best interests of clients and failed to have adequate arrangements in place to manage conflicts of interest.
The regulator found the firm provided template Statements of Advice to MWL advisers that contained misleading representations of Shield’s past performance and did not disclose its arrangements with lead generators in some SOAs or in Financial Services Guides. ASIC also alleged that MWL failed to advise clients of their rights to complain to Australian Financial Complaints Authority.
MWL’s managing director Nicholas Maikousis was banned for 10 years from providing financial services, effective from 25 September 2025, and was also banned from controlling an entity that carries on a financial services business or performing any function involved in the carrying on of a financial services business.
ASIC found Maikousis was not only responsible for the establishment of the “low-cost advice project” but also the driving force behind it and that he was on the investment committee that approved Shield.
MWL and Maikousis have the right to apply to the Administrative Review Tribunal for a review of ASIC’s decisions and legal representation acting on their behalf told Professional Planner an application for urgent review of the decision has been pursued.
SLF Lawyers senior partner John Gdanski, who is representing MWL, said his client has worked for 35 years with an unblemished record.
“The decision of the Australian Securities and Investments Commission is wrong,” Gdanski said in a statement.
“While the review into my client’s ban is underway, ASIC should focus their powers on ensuring the major institutions along with those trustees and research houses involved in this Shield fiasco that misled financial [advisers] be held accountable.”
MWL responsible manager and compliance manager Robert John Tohill was also banned from providing any financial services or acting as an officer, responsible manager or compliance manager for five years.
The regulator alleged Tohill was also on the investment committee that continued to evaluate and approve Shield, that he reviewed and approved template SOAs which contained false and misleading information about Shield and that he failed to disclose any arrangements with lead generators.
He was also accused of failing in his “gatekeeper functions” as compliance manager and responsible manager. He was responsible for maintaining MWL’s compliance manual which included MWL’s conflicts policy.
Tohill commenced as compliance manager at MWL in December 2016 and was appointed as one of MWL’s responsible managers in December 2021. He also has the right to apply to the tribunal for a review of ASIC’s decision.
Broken Shield
The collapses of Shield and the First Guardian Master Fund have led to the loss of around $1.2 billion in retirement savings of 11,000 investors.
ASIC halted new investments into Shield and First Guardian due to concerns the products were higher risk than labelled, as well as concerns over conflicts of interest and fraudulent activity with member funds.
The regulator was also concerned about the use of lead generators that referred potential clients to advisers who used high-pressure sales tactics to convince investors to rollover their superannuation fund onto a choice platform hosting the Shield or First Guardian funds when it wasn’t in their best interest.
ASIC previously banned four former financial advisers from MWL for giving inappropriate advice on Shield.
Four licensees have been connected to Shield and ASIC had previously cancelled the AFSL of Next Generation Advice in October 2024 and Financial Services Group Australia in June 2025.
FSGA was controlled by Ferras Merhi, an adviser who is central to the combined Shield and First Guardian investigation who is currently under a travel ban with assets frozen, along with collaborator Osama Saad who is alleged to have led the lead generation businesses that funnelled clients into both products.
Merhi was licensed to Sequoia-owned InterPrac, which ceased his authorisation in May.
MWL is the third of four licensees connected to Shield to be banned.
Last licensee standing
InterPrac is the only licensee connected to First Guardian to have not been cancelled; United Global Capital and FSGA have already been cancelled.
ASX-listed Sequoia announced its FY25 results on Thursday morning and said it is continuing to work closely with the regulators who are investigating Shield and First Guardian.
“We empathise with all clients that have been affected by the failure of these funds and urge them to contact InterPrac’s salaried advice team who will assist them regarding their personal situation,” Sequoia oa said.
“We will continue to work closely with the regulators who are investigating this matter and possible remedies to assist affected customers.”
Sequoia appointed former ASIC Commissioner Danielle Press earlier this month to lead a dedicated governance committee.
Sequoia, which also has other business lines outside of licensing and advice, reported revenue of $124.1 million and net profit after tax of $3.2 million.
The group also increased its investment in rival licensee owner Centrepoint Alliance to 16.52 per cent in May and had made $3.6 million in its 20 per cent holdings in Euree Asset Management and Morrisons Securities.
Funds under advice grew to approximately $18 billion at the end of FY25, which it said was driven by advisers moving from a transactional revenue model to annual service fees based on funds under management.
“We enter the new financial year with positive momentum,” Sequoia managing director Garry Crole said.
