ASIC urges advisers/licensees to dob-in misbehaving peers

Mike Taylor

Managing Editor and Publisher

25 June 2025

With the Australian Securities and Investments Commission’s (ASIC’s) inquiry into the Shield Master Fund managed investment scheme still on foot, the regulator has urged financial planning licensees to help identify and report similar instances.

It has pointed to “a range of significant investigations underway in this area” and the likelihood of ASIC taking further action.

The ASIC urging has come has financial advisers continue to complain that warnings around the collapse of Dixon Advisory were not sufficiently heeded by ASIC giving rise to heavy demands on the Compensation Scheme of Last Resort (CSLR).

The message was conveyed by ASIC commissioner, Alan Kirkland who, while not specifically naming the Shield fund or associated entities referenced “financial advice being provided – perhaps by the telemarketer, perhaps by a financial adviser they introduce during a phone call – which recommends that the consumer switch their super into a high-risk investment, often involving property development”.

“This exposes consumers to the risk of significant losses – not only from the nature of the underlying investments but also from the high fees that are deducted from their super balances, directly or indirectly, by a range of entities along the way,” he said.

Kirkland told a conference of financial planning licensees that they it was in their interests to stop such practices.

“Licensees have a role in preventing misconduct,” he said.

“It’s your responsibility to ensure advisers are acting in the best interests of clients, and to have adequate monitoring and supervision arrangements to detect concerning conduct.”

“We are also conscious that the advisers you authorise are in a position to recognise where somebody who comes to them has been a victim of poor advice.

“Where you detect concerning conduct, you must report it to ASIC. That includes misconduct involving other licensees.

“I hope that we can rely upon you to assist us to drive out these practices which – as I have noted – present threats not only to consumers, but also to trust in the financial advice industry.”