Australia’s corporate watchdog has cancelled the financial services licence of MWL Financial Services and banned its managing director, Nicholas Maikousis, for 10 years following serious compliance breaches linked to the Shield Master Fund.
ASIC Cancels MWL’s Licence and Bans Director Over Advice Failures
The Australian Securities and Investments Commission (ASIC) found that between 2021 and 2024, MWL operated a so-called “low cost advice project” using referrals from telemarketers, leading more than 750 clients to invest $155 million in Shield.
ASIC said MWL failed to act in clients’ best interests, used misleading statements of advice, and had undisclosed bonus and referral arrangements.
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 determined that Maikousis was the “driving force” behind the scheme and lacked adequate appreciation of the obligations owed by a financial services provider.
He has been banned from providing or controlling any financial services business until 2035.
The cancellation of MWL’s licence takes effect from 25 September 2025. ASIC has directed the firm to remain a member of the Australian Financial Complaints Authority until August 2026, allowing clients time to lodge complaints.
The regulator’s investigation into Shield continues, including proceedings against Equity Trustees over alleged due diligence failures. Since 2022, more than 5,800 consumers have invested $480 million in the fund.
