Key Insights
- ASIC bans Joel James Hewish for 10 years from financial services and cancels his company UGC’s AFS license for multiple regulatory breaches.
- The action follows findings that UGC recommended clients invest superannuation in speculative investments related to Hewish, violating best interest obligations.
SYDNEY (MarketsXplora) – The Australian Securities and Investments Commission (ASIC) has taken decisive action against Joel James Hewish and his company, United Global Capital Pty Ltd (UGC), in response to a series of regulatory breaches and misconduct, the regulator announced on Wednesday.
ASIC has imposed a 10-year ban on Hewish from participating in financial services and cancelled UGC’s Australian financial services (AFS) licence. The regulator’s investigation revealed that UGC’s authorised representatives had improperly recommended clients establish self-managed superannuation funds (SMSFs) and invest in high-risk ventures connected to Hewish.
The cancellation of UGC’s licence stems from multiple violations, including a deceptive client onboarding process, recommending speculative investments in which Hewish had a personal interest, and attempting to evade personal advice obligations.
ASIC found that Hewish, as UGC’s responsible manager and key person, was directly involved in the company’s misconduct. The regulator cited his “fundamental lack of competence” and “cavalier attitude” towards compliance with financial services laws as key reasons for the ban.
Both Hewish and UGC have appealed ASIC’s decision to the Administrative Appeals Tribunal (AAT). The regulator’s order, served on June 3, 2024, was only made public on July 25, 2024, after the AAT lifted interim orders restricting publication.
In a related development, UGC 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 also taken action against Global Capital Property Fund Limited (GCPF), an authorised representative of UGC, issuing interim stop orders in July and August 2022 to prevent the offer and issue of shares to retail investors due to regulatory concerns.
On June 20, 2024, ASIC secured interim orders from the Federal Court to freeze the assets of UGC and GCPF. The proceedings regarding these orders are scheduled for August 6, 2024.
Despite the licence cancellation, ASIC has stipulated that UGC must maintain its Australian Financial Complaints Authority (AFCA) membership until May 2025 and continue insurance coverage for clients.
The regulator has advised UGC clients to seek independent financial advice and consider lodging complaints with AFCA if they have concerns about the advice received from UGC.