The Federal Court has issued interim orders preventing financial adviser Ferras Merhi from operating in the financial services industry following allegations serious misconduct.
ASIC alleges Merhi engaged in “unconscionable conduct, failed to act in clients’ best interests, gave conflicted advice, and issued defective statements of advice” while allegedly earning millions of dollars.
Its case forms part of the regulator’s investigation into the Shield Master Fund and First Guardian Master Fund, both of which have collapsed.
The court’s orders prevent Merhi, or anyone acting on his behalf, from providing or promoting financial product advice, dealing in financial products, or marketing superannuation and managed investment schemes.
Justice Moshinsky said he was satisfied the injunctions were in the public interest.
A receiver has been appointed to identify Merhi’s assets and liabilities and report to the court within 90 days. His assets have been frozen since February 2025, and he has been subject to travel restrictions since July 2025.
A provisional liquidator has also been appointed to Venture Egg Financial Services Pty Ltd and United Financial Advice Pty Ltd, entities linked to Merhi, to assess their solvency and any suspected misconduct.
ASIC alleges that between 2020 and 2024, clients were advised to invest about $526m of superannuation funds into First Guardian and Shield. Merhi’s businesses allegedly received nearly $18m in advice fees and $19m in related marketing payments.
ASIC’s investigations into the Shield and First Guardian funds are continuing.
The court’s orders are interim, and no findings of wrongdoing have been made.
