The Australian Securities and Investments Commission (ASIC) has cancelled the Australian Financial Services licence of MWL Financial Services Pty Ltd.

The regulator also banned MWL’s director Nicholas Maikousis for 10 years over conduct in relation to the Shield Master Fund.

ASIC found MWL operated what it called a “low cost advice project” from 2021 to receive referrals from telemarketers/lead generators and to recommend clients invest their superannuation in Shield. Between September 2021 and February 2024, MWL recommended Shield to more than 750 clients who collectively invested $155 million.

The regulator found 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.

ASIC has also banned MWL’s managing director Nicholas Maikousis for 10 years from providing financial services. Effective from 25 September 2025, Mr Maikousis is also 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 Mr Maikousis was not only responsible for the establishment of the “low cost advice project” but also the driving force behind it; that he was on the investment committee that approved Shield and that he did not have an adequate appreciation for a financial services business’ fundamental obligations to its clients.

MWL and Mr Maikousis have the right to apply to the Administrative Review Tribunal for a review of ASIC’s decisions.