MWL AFSL cancelled, MD banned for 10 years
In further fall-out from the collapse of the Shield Master Fund, the Australian Securities and Investments Commission (ASIC) has cancelled the financial services license of MWL Financial Services Pty Ltd and banned MWL’s director, Nicholas Maikousis for 10 years.
ASIC said it 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.
Commenting on the move ASIC Deputy Chair Sarah Court said “Clients who seek advice from financial advisers should be able to trust that the advice they receive will be in their best interest. Failing to manage conflicts has the potential to cause consumers to be given financial product advice that may not suit their needs.’
As part of serious compliance failures, ASIC found MWL:
- did not take reasonable steps to ensure its advisers provided advice that was appropriate and in the best interests of clients
- provided template statements of advice (SOAs) to MWL advisers that contained misleading representations of Shield’s past performance
- failed to properly assess Shield when it was added to MWL’s approved product list
- was incentivised to recommend Shield
- had undisclosed bonus arrangements with its financial advisers who recommended Shield
- did not disclose its arrangements with lead generators in some SOAs nor in Financial Services Guides
- failed to have adequate arrangements in place to manage conflicts of interest
- failed to advise clients of their rights to complain to AFCA.
ASIC has also banned MWL’s managing director Nicholas Maikousis for 10 years from providing financial services. Effective from 25 September 2025, Mr Maikousis is 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 Mr Maikousis was not only responsible for the establishment of the “low cost advice project” but also the driving force behind it; that he was on the investment committee that approved Shield and that he did not have an adequate appreciation for a financial services business’ fundamental obligations to its clients.
MWL and Mr Maikousis have the right to apply to the Administrative Review Tribunal for a review of ASIC’s decisions.
SLF Lawyers, acting on behalf of MWL Financial Group Pty Ltd and its managing director Nicholas Maikousis, today lodged an application with Administrative Review Tribunal seeking an urgent review of an ASIC order that prevents their client from working and the cancellation of the AFSL LIC.
SLF Lawyers Senior Partner John Gdanski said the application was to seek an immediate stay of the ASIC order and a review of the ban which is most unusual for someone who has worked for 35 years with an unblemished record.
“The decision of the Australian Securities and Investments Commission is wrong. 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 advisors be held accountable,” Gdanski said.
So here’s the question from a non-investment adviser. Did ASIC receive complaints about Shield and MWL from advisers and ignore those complaints?
May I cite the case of dazzling Daryl Dixon. He was subject to many complaints from Canberra advisers about some of his more nefarious recommenndations, such as that no one needed more than $150,000 of death and TPD cover, and from the NRMA, regardless of the circumstances.He didn’t believe in income protection
It seems that ASIC regarded those complaints as being founded on adviser complaints on being bested in competition, not inapropriate advice or ethics.
No one at ASIC thought it was a good idea to investigate what he was up to, and look where we are, hoisted on the petard of CLSR
I noted with some amusement the other day that that other dazzlling Daryl, Daryl McGuire of Wagga, has been sent to jail for six months for misleading ICAC. At least he didn’t cost his investors huge losses
Yes ASIC were informed by Advisers of Shield however ASIC failed to act and will continue to cover up & say they were not. Let’s remember ASIC dosen’t want to work with Advisers but wipe them out. It’s quite an adversarial relationship that is not in the interests of Australians or the sector.