ASIC bans another adviser over Shield advice
The Australian Securities and Investments Commission (ASIC) has banned another Melbourne-based financial adviser over advice issued around the Shield Master Fund.
ASIC said had banned Jovan Videkanic from providing financial services, controlling an entity that carries on a financial services business or performing any function involved in the carrying on of a financial services business for seven years.
ASIC found that Videkanic gave inappropriate advice to certain clients which was not in their best interests between July 2020 and February 2024 to:
- establish a self-managed superannuation fund (SMSF), rollover their existing superannuation into the SMSF and invest a significant portion of their retirement savings into the Global Capital Property Fund, a highly speculative investment when he was authorised by United Global Capital Pty Ltd (in liquidation) (UGC), and
- invest most of their superannuation into the High Growth class or the Growth class of the Shield Master Fund (Shield) which were high risk investments or the Balanced class which was a medium-high risk investment when he was authorised by MWL Financial Services Pty Ltd (Administrators Appointed) (MWL). Shield also had a limited trading history.
ASIC also found that Videkanic’s statements of advice to certain clients contained false and misleading statements, implying they would enjoy better returns by investing their superannuation into Shield, including representations that Shield had a higher performing track record against other super funds when Shield had only been in existence for a short period.
Videkanic was also a member of MWL’s investment committee.
ASIC said it had reason to believe that Videkanic is not a fit and proper person, is not competent and is likely to contravene financial services law.
The banning order took effect from 25 August.
It is good to see ASIC banning advisers who have done wrong, but are they actually going to do anything about the product managers who actually stole the money from clients? Or is it business as usual with ASIC only chasing the easiest targets?
Maybe ASIC need to have a look at the Responsible Manager of Rhombus and a deep dive into the recent AFCA determinations of an RI advice adviser, instead of trying to cover the whole thing up!!!!
“implying they would enjoy better returns by investing their superannuation into Shield, including representations that Shield had a higher performing track record against other super funds”
All we need to do is turn on the television with the multitude of advertising from industry super and the implied best performance if you invest with them. There needs to be one set of rules for all please.
Seems to be a lot of banning advisers for supposedly “recommmending high risk investments with limited track record” but very little action on the primary causes of the problem which were:
Sure ban these advisers and one Responsible Manager it seems.
As you say, who else, other parties will be banned ?
As for ASIC action on Dodgy Dixon’s, a grand total of ZERO bannings ?
How is that the case ?
Just move it all sideways to E&P and ASIC do less than nothing and pass it all to CSLR.
I don’t think you actually understand why they were banned. Are you involved in this chain somewhow
Given the high turnover of Advisers working at United Global Capital we’re probably going to see at least another 50 advisers gone. Some of these Advisers worked there for as little as 3-6 months before realising the hot stinking mess but I’ve seen several SOA’s where the advisers were there for several years recommending there products for the nice little 50% of the Advice fee portion on a 2.7% ongoing fee.
Let’s not forget that the Investors would have been quite happy getting there 7% whilst the Directors stole 4% until ASIC closed it down. If only they were AwareSuper doing the same gig they’d have there money today.