Three defendants face ASIC's enforcement as Shield Master Fund collapse hits courts
A federal court held that liquidation does not stop ASIC from pursuing a financial advice firm linked to the Shield Master Fund collapse.
In Australian Securities and Investments Commission v MWL Financial Services Pty Ltd (in liq) [2026] FCA 199, decided on 5 March 2026, Justice Bennett of the Federal Court of Australia granted ASIC leave to commence and proceed with enforcement action against MWL Financial Services Pty Ltd (MWL), a company in voluntary liquidation, with Imperial Capital Group Australia Pty Ltd (ICGA) and MWL's managing director, Nicholas Maikousis, named as co-defendants in the broader proceedings.
ASIC alleged that MWL, operating under an Australian Financial Services Licence, provided inappropriate personal financial advice to 566 retail clients through a business model it called the "Low Cost Advice Project." The scheme directed clients' superannuation savings into the Shield Master Fund during the period between (no later than) 6 May 2022 and 2 February 2024.
ASIC further alleged that ICGA referred almost all clients to MWL's representatives until March 2023, and that those clients' superannuation was subsequently invested into Shield. At various times, ICGA's representatives also served as representatives of Shield's responsible entity. Throughout the relevant period, MWL was aware that ICGA held commercial arrangements with Shield related to those referrals.
ASIC sought declarations of contraventions, disqualification orders, pecuniary penalty orders, and ancillary orders, including costs. Against MWL, it alleged contraventions of the Corporations Act 2001 (Cth). Against ICGA, it alleged contraventions of the Australian Securities and Investments Commission Act 2001 (Cth) and involvement in MWL's contraventions of the Corporations Act 2001 (Cth). Against Maikousis, it alleged involvement in MWL's contraventions of the Corporations Act 2001 (Cth).
MWL entered voluntary administration on or about 29 September 2025 and moved into liquidation on about 21 November 2025, requiring ASIC to seek court leave before it could proceed.
Justice Bennett held that the public interest in regulatory oversight remained entirely unaffected by MWL's liquidation. Proceedings of this nature promoted the public interest by "reflecting the seriousness of the contraventions that are alleged, and the importance that issues of that kind are properly the subject of regulatory review and oversight." ASIC's core relief – declarations and pecuniary penalties – also fell outside what the standard insolvency process of lodging a proof of debt could deliver.
The court ordered ASIC not to enforce any pecuniary penalty or costs order against MWL without obtaining further leave of the court. MWL's liquidators neither consented to nor opposed the application, accepting that condition.
