Australia's market watchdog has banned a financial adviser for six years after finding he misled clients while steering their retirement savings into a property fund that has since collapsed.
Australian Regulator Bans Financial Adviser for Six Years Over Fund Scheme
The Australian Securities and Investments Commission (ASIC) banned Milutin Petrovic from providing financial services after determining he failed key advice obligations when recommending clients invest in products tied to his now-liquidated employer, United Global Capital Pty Ltd.
Petrovic's scheme involved advising clients to establish self-managed superannuation funds and then funnel significant portions of their retirement savings into the Global Capital Property Fund Limited, a related property investment company that regulators later forced into liquidation.
Last week FinanceMagnates.com reported on another ASIC’s case where the regulator cancelled MWL Financial Services' license and bans the director for 10 years.
Claims of Limited Advice Disputed
ASIC found that Petrovic told clients he was providing only “execution only advice” despite acting far beyond those bounds. Investigators determined he actually provided comprehensive comparisons between clients' existing superannuation funds and his recommended investments, including specific dollar projections showing how much better off clients would be by switching.
The regulator concluded Petrovic violated multiple professional standards by failing to act in clients' best interests, providing inappropriate advice, prioritizing his employer's interests over clients', making misleading statements, and issuing defective advice documents.
“Mr. Petrovic provided clients with Statements of Advice that were defective and therefore engaged in misleading and deceptive conduct,” ASIC stated in its announcement.
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Legal Challenge Pending
Petrovic has challenged the ban through the Administrative Review Tribunal, with hearings concluded in July. A decision remains pending. The six-year prohibition took effect in January 2025, though it was temporarily suspended before resuming in March.
The case adds to mounting regulatory action against United Global Capital and its associates. In August, the Administrative Review Tribunal upheld a separate 10-year ban against the company's director Joel Hewish, whom ASIC had banned in June 2024.
Broader Company Collapse
United Global Capital entered voluntary administration in July 2024, with creditors voting to liquidate the Melbourne-based firm in August. The Federal Court separately ordered the winding up of the Global Capital Property Fund in October 2024, appointing liquidators from FTI Consulting.
ASIC had previously frozen assets of both entities in June 2024 and issued multiple stop orders on the property fund's share offerings dating back to 2022.
The regulator has advised former United Global Capital clients to seek independent financial advice unconnected to the firm regarding their circumstances. ASIC has also issued broader warnings about high-pressure sales tactics targeting superannuation switching decisions.
United Global Capital had operated under an Australian financial services license since August 2017 before losing its authorization as part of the regulatory crackdown.
