Chris Dastoor

SQM Research will defend itself in court against ASIC over allegations itprepared reports containing misleading representations and that its processes fell short of standards when it rated the Shield Master Fund. The proceedings mean managing director Louis Christopher will not be able to fulfill his appearance at the Researcher Forum.

Evidentia Group, owned by ASX-listed Generation Development Group, has acquired adviser business consultancy firm Encore Advisory. The asset consultant believes the addition of Encore will help expand its practice management capabilities in market.

Researcher Lonsec has come out in support of ASIC’s interim report into private credit distribution, noting the recent report highlights red flags the researcher claims aligns with its approach to rating products. The praise comes as the regulator issues another stop order against a private credit provider this week.

A review that focuses on distribution models, conflicts and supervision in failed managed investment schemes is needed in the wake of the Shield and First Guardian collapse, according to a financial adviser who has written an open letter to Minister for Financial Services Daniel Mulino. It’s one of six recommendations made in the letter to help improve the advice profession.

The next tranche of Delivering Better Financial Outcomes legislation is due “shortly”, but Minister for Financial Services Daniel Mulino is unable to provide a timeframe, softening from earlier indications it would be released by the end of the year.

ASX-listed Sequoia Financial Group has denied it is transferring advisers out of its InterPrac licensee with the intention of avoiding mounting liabilities from the collapse of the Shield and First Guardian master funds. The concern has been raised by victims of the collapsed schemes who are worried about a repeat of the group using legal loopholes to avoid accountability.

ASIC has sued the asset management arm of ASX-listed licensee owner Fiducian Group over allegations of misleading and deceptive conduct about a now-closed ESG fund. Investors had raised concerns about investments into mining companies, which ran contrary to the values described in the PDS, while the fund continued to distribute such documents for nine years after concerns were raised.

FAAA has called for changes to external dispute resolution rules to assist consumers in making complaints against entities other than professional advisers, pointing to failures across the chain amid the collapse of the Shield and First Guardian master funds. Meanwhile, the association has pointed to a SIS Act provision that would allow funds to apply to the government for financial assistance for fraud-induced losses.

Shadforth has acquired Melbourne-based financial advice firm PMD Financial Advisers in the first of what may be a series of deals. The business intends to grow both organically and through M&A with the latter still very being dependent on acquirees willingness to buy into Shadforth’s values.

Entireti has re-tooled a managed account service it picked up during the acquisition of Australian Unity’s financial advice business, rebranding it as Salita Portfolio Services. The separately managed accounts offering is supported by the investment consulting capabilities of Evidentia Group’s Lonsec Investment Solutions.

Client satisfaction offers a compounding return for advice practices, as levels rise the longer the relationship progresses. However, high satisfaction doesn’t automatically prevent clients from leaving and research presented to the Netwealth Accelerate Summit showed how advisers can create loyalty that lasts.

Millennial and Gen Z consumers want to get financial advice from sources they trust, but that doesn’t automatically mean they’ll defer to a professional. With two thirds of funds under advice at risk of leaving practices in the intergenerational wealth transfer, advisers who step up now will build life-long relationships.

Mayfair 101 Group director James Mawhinney will be unable to promote or raise funds for financial products for a further 15 years after his restraint orders were extended. But despite the court finding he had a “willingness to adopt a reckless approach to the conduct of a financial services business”, Mawhinney still intends to appeal the decision.

Investors who suffered losses in the Shield and First Guardian scandal may have received Statements of Advice that appear to have been wrongly or falsely attributed to financial advisers who are currently under investigation by the corporate regulator. An investigation by Professional Planner reveals one victim of the collapsed scheme never spoke to or met with the adviser whose name and company appears on the SOA provided to her.

Morgans is well-known as a stockbroking firm, but demand from its network saw it improves its capabilities to support holistic wealth offerings. Making these changes a decade ago has seen Morgans become one of the most desirable licensees, according to CoreData’s annual licensee satisfaction research.

Ferras Merhi, the former adviser alleged by ASIC to have earned almost $40 million for promoting and recommending the Shield and First Guardian master funds, has used a primetime TV program to plead he was a victim of poor due diligence by researchers and platforms. However, ASIC has painted a different picture, expanding its legal proceedings against the former InterPrac authorised representative.

The so-called inquiry into the collapse of Dixon Advisory has been quietly scrapped, with the new Senate Economics References Committee, led by former Minister for Financial Services Jane Hume, declining to continue the review. The Financial Advice Association of Australia said ending the inquiry “betrays the victims” who put faith in the government to investigate product collapses and called for the review to not only be re-adopted, but to include the failures of the Shield and First Guardian master funds in its remit.

A day after ASIC disclosed it was suing Equity Trustees for due diligence failures relating to Shield and First Guardian, consumer advocate Super Consumers Australia has called on trustees to hold themselves to account for their role in the collapse of the two funds and remediate clients directly.

Issues brought to light by the failures of the Shield and First Guardian master funds will dominate ASIC priorities this financial year, according to its FY26 corporate plan, with legal proceedings already brought against Equity Trustees for its alleged role in the collapse. ASIC will also be spending the next year probing AFSLs offering managed accounts and compliance with the education standard deadline.

Consumer advocacy body Super Consumers Australia has called on the government to end the loophole in anti-hawking laws that helped lead generators drive thousands of consumers toward the failed Shield and First Guardian funds.