ASIC has banned Joel James Hewish 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.
ASIC has also cancelled the Australian financial services (AFS) licence of Mr Hewish’s company, United Global Capital Pty Ltd (UGC). ASIC found that UGC’s authorised representatives contacted prospective clients and recommended they establish a self-managed superannuation fund (SMSF), rollover their existing superannuation into the SMSF and invest it in highly speculative investments related to Mr Hewish.
UGC’s AFS licence 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 Mr 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, and
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 Mr 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, and
cannot be trusted to comply with financial services laws.
Mr Hewish and UGC have appealed to the Administrative Appeals Tribunal for a review of ASIC’s decision.
ASIC’s order cancelling UGC’s licence and banning Mr Hewish was served on 3 June 2024, but ASIC has been unable to publish its decision until now due to interim orders restricting publication obtained by UGC and Mr Hewish in the AAT but lifted by the AAT on 25 July 2024.
Mr Hewish’s banning is now recorded on ASIC’s banned and disqualified register.
UGC was placed into voluntary administration on 5 July 2024. David Stimpson and Hugh Armenis of SV Partners were appointed Voluntary Administrators.
ASIC’s investigation into the conduct of UGC, Mr Hewish and related entities is continuing. ASIC will provide updates on this matter on its United Global Capital page.