The Administrative Review Tribunal has upheld the Australian Securities and Investment Commission’s (ASIC) decision to ban United Global Capital (UGC) director Joel James Hewish for 10 years.
The decision means that Hewish’s ban from providing financial services, performing any function involved in carrying on of a financial services business and controlling an entity carrying on a financial services business, still stands.
Last year ASIC banned Hewish, a Victorian financial adviser, for behaviour concerning advice to clients that encouraged them to establish SMSFs and then invest in highly speculative investments linked to his financial services business United Global Capital Pty Ltd (UGC). The ban was effective from June 2024, but Hewish sought a review of the decision the same month.
The advice involved getting clients to establish an SMSF and then invest in property investment company Global Capital Property Fund Limited, which was an authorised representative of UGC from 25 March 2020.
The regulator’s investigation into the conduct of UGC, Hewish and related entities is ongoing, and Hewish may seek an appeal of the Tribunal’s decision in the Federal Court or seek a referral from the President of the Tribunal to the Tribunal’s Guidance and Appeals panel.
The Global Capital Property Fund Limited was ordered to be wound up in October 2024 by the Federal Court due to numerous concerns ASIC had about the management of the business.
UGC was based in Melbourne and held an Australian financial services licence since 18 August 2017. It entered voluntary administration in July 2024 and in August 2024 its creditors resolved to wind-up UGC and appoint David Stimpson of SV Partners as liquidator.
ASIC chair Joe Longo recently put the industry on notice at the Financial Services Council’s Symposium ‘Shaping Advice in a Time of Change’ regarding schemes similar to that of Hewish and UGC. ASIC also recently launched its second consumer awareness campaign about attempts to lure Australians into switching their superannuation into high-risk investments.
“Our message to Australians has been if you are unsure or are feeling pressured, just hang up. Any good investment opportunity is not going to disappear overnight,” Longo said.
