An adviser who was banned for six years for recommending the establishment of SMSFs for the purpose of investing into a related property investment company has been successful in having that period reduced by half.
Former United Global Capital (UGC) financial adviser Milutin Petrovic, who was handed a six-year ban from providing financial services, performing any function involved in the carrying on of a financial services business and controlling an entity that carries on such a business, has had the time period reduced to three years by the Administrative Review Tribunal (ART).
The original ban, which was made by an Australian Securities and Investments Commission (ASIC) delegate, took effect from 15 January 2025, was stayed on an interim basis on 28 February 2025 and resumed on 26 March 2025 when that stay was dissolved, and publicised by the corporate regulator in September 2025.
In the period between the ban and its publication, Petrovic had sought a review, which was heard by the ART in June and July 2025 with its decision to vary the ban issued on 11 December last year.
In deciding to make the variation, ART senior member Mark Harrowell stated Petrovic’s “conduct demonstrates incompetence and is beyond what I would call mere carelessness”.
“This is because, despite any training provided in support of the UGC business model, Mr Petrovic should, but failed to, have regard to what he was saying to and what he was told by the clients. Consequently, he failed to meet his obligations owed to the clients,” Harrowell said
“However, there was no dishonesty, no loss to clients claimed and no personal gain to Mr Petrovic.”
The banning resulted from Petrovic’s role as a financial adviser of UGC where he advised clients to set up an SMSF and then invest in the Global Capital Property Fund Limited (GCPF), which was a related property investment company operated by UGC director Joel Hewish and that has since gone into liquidation.
ASIC found Petrovic had not acted in his clients’ best interests, not provided advice that was appropriate, not prioritised his clients’ interests ahead of those of his licensee, made statements that were likely to be misleading and gave defective statements of advice.
UGC entered into voluntary administration on 5 July 2024 and commenced being wound up from 9 August of that year, with court orders issued for the wind-up and liquidation of GCPF on 3 October 2024.
