The Australian Securities and Exchange Commission (ASIC) has canceled the license of MWL Financial Services Pty Ltd.
The regulator also banned MWL manager Nicholas Maikousis for 10 years for behavior in relation to Master Fund Shield.
Asic found that MWL has exploited what is called “low -cost tips program” from 2021 to receive references from Telemarketers/Lead Generators and to recommend clients to invest their retirement in Shield. Between September 2021 and February 2024, MWL recommended Shield to more than 750 customers who invested $ 155 million collectively.
The regulator was found MWL:
- She did not take reasonable measures to ensure that her advisers provided tips that were appropriate in the interest of customers
- Advice Standards (SOA) statements to MWL consultants containing misleading representations of the previous performance of Shield
- failed to properly evaluate Shield when added to MWL’s approved product list
- moved to recommend a shield
- She had non -announced bonus arrangements with her financial advisers who recommended Shield
- She did not disclose her arrangements with lead generators in some SOAs nor on financial services drivers
- Failure to have sufficient arrangements for managing conflict of interest
- failed to advise customers on their rights to protest at AFCA.
ASIC has also banned MWL Nicholas Maikousis for 10 years since the provision of financial services. As of September 25, 2025, Mr Maikousis has also been prohibited in the control of an entity exercised by a financial services business or to perform any operation involved in the transfer of a financial services company.
Asic found that Mr Maikousis was not only responsible for establishing the “low cost of advice” and the driving force behind it. That was in the Investment Committee that approved Shield and that it was not sufficiently assessed for the fundamental obligations of financial service businesses to its customers.
MWL and Mr Maikousis have the right to apply to the Administrative Court of Administrative Review to review ASIC’s decisions.