The Australian Securities and Investments Commission (ASIC) has taken decisive action against United Global Capital Pty Ltd (UGC) and its director. It banned Joel James Hewish from the financial services industry for 10 years and canceled UGC's financial services license.

Australian Regulator Bans Financial Services Director, Cancels Company License

The regulatory body found that UGC's authorized representatives had engaged in questionable practices. These included recommending that clients establish self-managed superannuation funds (SMSFs) and invest in speculative products related to Hewish.

ASIC's investigation revealed that UGC used deceptive client onboarding processes and failed to meet its obligations as a licensee.

ASIC's decision to ban Hewish was based on his involvement in UGC's misconduct as its responsible manager. The regulator cited Hewish's “fundamental lack of competence” and “cavalier attitude” towards compliance with financial services laws.

The regulator canceled UGC's AFS license due to multiple violations. These included using deceptive client onboarding practices, recommending speculative investments tied to Hewish, breaching personal advice obligations, and failing to meet general licensee requirements such as ensuring efficient and fair service provision, compliance with financial laws, and proper conflict of interest management.

🇦🇺 ASIC | ASIC Bans Joel James Hewish and UGC, Continues Investigation into Misconduct

• ASIC has banned Joel James Hewish for 10 years from providing financial services and cancelled the AFS license of United Global Capital Pty Ltd (UGC) due to misconduct. • UGC's authorized…

— RegFlow Hub (@RegFlowHub) July 31, 2024

Both Hewish and UGC have appealed ASIC's decision to the Administrative Appeals Tribunal. The company entered voluntary administration on July 5, 2024, with David Stimpson and Hugh Armenis of SV Partners appointed as administrators.

ASIC's investigation into UGC, Hewish, and related entities is ongoing. The regulator has recommended that impacted clients seek independent advice and consider lodging complaints with the Australian Financial Complaints Authority.

This is not the only financial institution director recently banned by ASIC. In May, the regulator permanently prohibited Christopher David Nairn, a former director based in Melbourne, from providing financial services or engaging in any activities within the financial and credit sectors. The prohibition followed an investigation that uncovered Nairn's falsification of numerous documents through the forgery of client signatures, which facilitated the misappropriation of $650,000 from client funds.

Previously, Mark Jennings, an unlicensed CFDs trader from Queensland, received a ten-year ban. Jennings was discovered to have deceptively claimed that he could guarantee returns from trading CFDs and provided services without the requisite authorization.

ASIC Suspends Another Fund Manager's License

In a separate action also on July 31, 2024, ASIC suspended the AFS license of Id Funds Management Limited until February 28, 2025. The regulatory body cited Id Funds' failure to meet its statutory audit and financial reporting lodgment obligations for the 2022 and 2023 financial years as the reason for the suspension.

ASIC has indicated that the suspension could be lifted earlier if Id Funds complies with its obligations . However, the regulator warned that further action may be considered if the company fails to meet its requirements by the end of the suspension period. Id Funds, which has held its AFS license since March 2017, retains the right to appeal ASIC's decision to the Administrative Appeals Tribunal.