ASIC has cancelled the AFS licence of MWL Financial Services and banned its director Nicholas Maikousis for 10 years over conduct in relation to the Shield Master Fund (Shield).
Keystone Asset Management Ltd is the responsible entity of the Shield scheme and is now in liquidation.
MWL, which provides services including accounting, life insurance, and financial planning, operated what ASIC claims was a ‘low cost advice project’ to receive referrals from lead generators and to recommend clients invest their superannuation in Shield.
ASIC states that between September 2021 and February 2024, MWL recommended Shield to more than 750 clients who collectively invested $155m.
ASIC’s 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.”
ASIC claims 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
Effective 25 September 2025, Maikousis will be 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.
Failed to have adequate arrangements in place to manage conflicts of interest…
Maikousis, a former State Manager for Norwich Union, got his first job in the industry in 1987 in senior management roles including AIG Australia. He is a founding partner of MWL and responsible for the Group’s distribution channels.
MWL’s website states Maikousis’ “…corporate background and industry relationships enables the company to provide expert advice and resources to all our clients”.
ASIC states he was on the investment committee that approved Shield and did not have an adequate appreciation for a financial services business’ fundamental obligations to its clients.
MWL and Maikousis have the right to apply to the Administrative Review Tribunal for a review of ASIC’s decisions.
ASIC has specified that MWL must remain a member of AFCA and maintain professional indemnity insurance until 25 August 2026.
ASIC has previously banned MWL’s responsible manager and four former MWL financial advisers in respect of advice provided in relation to Shield. In February 2024, ASIC halted new offers of investments in Shield.
In June 2024, ASIC took action to secure the assets held within Shield. ASIC also sought orders to preserve the assets of the scheme so that they may be recovered, to the extent available, for the benefit of investors while the investigation is continuing.
In August 2025, ASIC commenced proceedings in the Federal Court against superannuation trustee Equity Trustees alleging due diligence failures in relation to Shield.
