Australia’s corporate regulator has cancelled the Australian Financial Services licence of MWL Financial Services and imposed a decade-long ban on the firm’s managing director, Nicholas Maikousis, over advice and distribution practices linked to the Shield Master Fund.
ASIC said MWL ran what it described as a low-cost advice model from 2021 that relied on referrals from telemarketers and lead generators and steered clients to invest their superannuation in Shield. Between September 2021 and February 2024, more than 750 clients were advised to invest, collectively putting about $155 million into the fund.
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.’
According to ASIC, MWL failed to ensure its advisers acted in clients’ best interests and gave appropriate personal advice, issued template statements of advice that misrepresented Shield’s past performance, and added Shield to its approved product list without adequate assessment. The regulator also found MWL had incentives to recommend the fund, undisclosed bonus arrangements for advisers who did so, and failed to disclose lead-generation arrangements in some client documents or to maintain adequate conflict-management arrangements. It further said clients were not always told of their right to complain to the Australian Financial Complaints Authority (AFCA).
ASIC has banned Mr Maikousis from providing financial services for 10 years. From 25 September 2025, he is also prohibited from controlling an entity that operates a financial services business or performing any function involved in such a business. The regulator said he conceived and drove the low-cost advice project, sat on the investment committee that approved Shield, and did not adequately appreciate fundamental obligations owed to clients.
MWL and Mr Maikousis may seek a review of ASIC’s decisions by the Administrative Review Tribunal. The ban will appear on ASIC’s banned and disqualified register, and the licence cancellation will be noted on ASIC’s professional registers.
ASIC’s action comes amid a broader probe into Shield. In February 2024 it halted new offers of the fund by issuing interim stop orders on four product disclosure statements, and in June 2024 the Federal Court made orders to secure Shield’s assets while investigations continue. In August 2025, ASIC commenced Federal Court proceedings against superannuation trustee Equity Trustees alleging due-diligence failures linked to the fund.
The regulator says that since February 2022 at least 5,800 consumers have invested more than $480 million in Shield, largely via superannuation platforms whose trustees were Macquarie Investment Management Limited and Equity Trustees Superannuation Limited. ASIC’s investigation indicates potential investors were cold-called by lead generators and referred to financial advisers who recommended rolling super into a retail choice fund and investing part or all of it into Shield. ASIC is investigating Keystone Asset Management Ltd (in liquidation), the responsible entity for Shield, its directors and officers, superannuation trustees, certain advisers, lead generators and others. It has previously banned MWL’s responsible manager and four former MWL advisers over Shield-related advice.
Clients of MWL who are concerned about their advice can complain to AFCA. ASIC has required MWL to remain an AFCA member and maintain professional indemnity insurance until 25 August 2026, and recommends any complaint related to MWL advice be lodged by that date. ASIC will publish updates on the Shield Master Fund on its website.
