The Australian Securities and Investments Commission (ASIC) has banned former financial adviser Milutin Petrovic for six years after finding he failed to act in his clients’ best interests when recommending investments tied to his licensee, United Global Capital Pty Ltd (UGC), now in liquidation.
ASIC Bans Former United Global Capital Adviser for Six Years
ASIC determined that Mr Petrovic advised clients to establish self-managed superannuation funds and direct significant portions of their retirement savings into the Global Capital Property Fund Limited (GCPF), a related property investment company which is also now in liquidation.
The regulator found Mr Petrovic had not acted in his clients’ best interests, failed to provide appropriate advice, and prioritised the interests of UGC over those of his clients.
He was also found to have made misleading statements and issued defective Statements of Advice.
ASIC said that by purporting to limit his advice to “execution only” while still presenting comparative analyses, Mr Petrovic engaged in misleading and deceptive conduct.
The six-year ban, which took effect on 15 January 2025, was briefly stayed in February before resuming on 26 March. Mr Petrovic has applied to the Administrative Review Tribunal for a review of the decision, with judgment reserved after hearings in June and July.
ASIC urged former UGC clients to seek independent financial advice unrelated to the firm. The regulator also reiterated its warnings for consumers to remain cautious of high-pressure sales tactics and inappropriate superannuation switching advice.
