ASIC bans UGC director

ASIC has banned Joel James Hewish for 10 years from providing financial services and performing any functions involved in a financial services business.

The decision also includes prohibiting him from controlling any entity that carries on a financial services business.

Alongside this, ASIC has cancelled the Australian financial services (AFS) licence of Hewish’s company, United Global Capital (UGC).

Findings against UGC and Hewish

ASIC’s investigation found that UGC’s representatives contacted prospective clients, recommending the establishment of self-managed superannuation funds (SMSF) and investment in highly speculative products related to Hewish.

ASIC cancelled UGC’s licence due to multiple breaches, including:

• Using a client onboarding process that lured individuals into investing retirement savings in UGC-related products through deceptive calls.
• Recommending speculative investments in Global Capital Property Fund, in which Hewish had an interest.
• Attempting to contract out of its personal advice obligations, providing inappropriate advice to clients, and failing to act in clients’ best interests.
• Failing to ensure financial services were provided efficiently, honestly, and fairly.

Hewish’s ban and UGC’s administration

ASIC banned Hewish for his involvement in UGC’s conduct as its responsible manager, demonstrating a lack of competence and a non-compliant culture at UGC.

“Mr. Hewish created a culture of non-compliance and incompetence at UGC, and cannot be trusted to comply with financial services laws,” ASIC said.

UGC was placed into voluntary administration on July 5, with David Stimpson and Hugh Armenis of SV Partners appointed as administrators.

Hewish and UGC have appealed ASIC's decision to the Administrative Appeals Tribunal (AAT).

ASIC’s order, served on June 3, was made public after the AAT lifted interim orders restricting publication on July 25.

Ongoing investigation and consumer warnings

ASIC’s investigation into the conduct of UGC, Hewish, and related entities continues, with updates available on ASIC’s United Global Capital page.

In June, ASIC obtained interim orders from the Federal Court to freeze UGC and GCPF’s assets, with proceedings adjourned to Aug. 6.

ASIC warns consumers to be cautious of high-pressure sales tactics and online advertisements that promote inappropriate superannuation switching advice.

“It is an ASIC cross-sector priority to deter cold calling superannuation switching business models,” the regulator said.

Consumers are advised to seek independent advice and consider lodging complaints with the Australian Financial Complaints Authority if concerned about advice received from UGC.

Read the ASIC media release here.

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