ASIC cancels AFSL, bans director over speculative investment recommendations

Joel James Hewish has been banned for 10 years from providing financial services, performing any function involved in carrying on of a financial services business, and controlling an entity that carries on a financial services business.

The Australian Securities and Investments Commission (ASIC) also cancelled the Australian Financial Services Licence (AFSL) of his company, United Global Capital Pty Ltd (UGC). UGC operated as an Australian financial services business based in Melbourne from 18 August 2017 and was placed in administration on 5 July 2024.

ASIC found that UGC’s authorised representatives contacted prospective clients and recommended they establish a self-managed superannuation fund (SMSF), roll over their existing superannuation into the SMSF and invest it in highly speculative investments related to Hewish.

UGC’s AFSL was cancelled based on ASIC’s findings that UGC:

• Used a client onboarding process that lured people into investing their retirement savings in UGC-related products by having calls made to prospective clients using details including those obtained from a third-party website operator, offering them a free superannuation “health check”.
• Through its authorised representatives, recommended investments to clients that included speculative investments in Global Capital Property Fund Limited in which Hewish had an interest.
• Attempted to contract out of its personal advice obligations whereas its representatives did give personal advice to clients in breach of those obligations, including by failing to act in clients’ best interests and giving them inappropriate advice.
• Contravened a number of its general obligations as an AFS licensee including the obligation to do all things necessary to ensure the financial services authorised under its licence are provided efficiently, honestly and fairly; the obligation to take reasonable steps to ensure its representatives comply with financial services laws, and the obligation to have adequate arrangements in place to manage conflicts of interest.

ASIC banned Hewish having found that he:

• Was involved in UGC’s conduct as its responsible manager and key person under the licence.
• Demonstrated a fundamental lack of competence and a cavalier attitude to his management of UGC and the importance of complying with financial services laws.
• Created a culture of non-compliance and incompetence at UGC.
• Cannot be trusted to comply with financial services laws.

Hewish and UGC have appealed to the Administrative Appeals Tribunal (AAT) for a review of ASIC’s decision.

ASIC’s order cancelling UGC’s licence and banning Hewish was served on 3 June 2024, but ASIC said it was unable to publish its decision until now due to interim orders restricting publication obtained by UGC and Hewish in the AAT but these were lifted by the AAT on 25 July 2024.

Although UGC’s licence is cancelled, ASIC has specified the licence still has effect for limited purposes including that UGC continues to be an AFCA member until May 2025, and it continues to have insurance cover for clients.

The banning is now recorded on ASIC’s banned and disqualified register.

ASIC’s investigation into the conduct of UGC, Hewish, and related entities is continuing.