ASIC sues former adviser over alleged conflicted remuneration schemes tied to fund collapse

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ASIC sues adviser over fund collapse

Highlights

ASIC alleges Osama Saad's entities, Atlas Marketing and United Capital, received about A$34 million from Shield Master Fund and First Guardian related entities.
Between February and December 2021, Saad advised 217 retail clients to roll over more than A$25 million of superannuation into First Guardian, allegedly breaching best interest obligations.
ASIC has commenced 17 proceedings linked to the First Guardian and Shield investigations, making them among its largest and most complex enforcement actions to date.

Proceedings target advice and payment structures

As reported by ASIC, the regulator has commenced civil penalty proceedings against former financial adviser Osama Saad, alleging he used schemes to avoid conflicted remuneration laws and breached his best interest obligations when advising clients to invest superannuation into the First Guardian Master Fund.

ASIC alleges Saad's entities, Atlas Marketing and United Capital, were paid around A$34 million by entities connected to the Shield Master Fund and First Guardian. The regulator also alleges some of that money was used for Saad's personal benefit and for the benefit of associated individuals and entities.

According to ASIC, some of the funds also supported marketing and lead generation businesses that referred thousands of clients to Venture Egg and Financial Services Group Australia. Those firms then recommended that clients invest their superannuation into Shield, First Guardian, or both.

ASIC further alleges that between February and December 2021, Saad advised 217 retail clients to roll over more than A$25 million of their superannuation into First Guardian. The regulator says that advice was not in the clients' best interests, was inappropriate, and prioritized Saad's own interests over those of his clients.

Broader enforcement push around First Guardian and Shield

ASIC Chair Sarah Court says conflicted remuneration laws are designed to protect consumers from payments or benefits that could influence the advice they receive or the products recommended to them. She also says Australians expect financial advisers to act in their clients' best interests when handling retirement savings, and ASIC alleges that did not occur in this case.

The regulator is seeking declarations, pecuniary penalties, orders restraining Saad from providing financial services, and disqualification from managing corporations. ASIC says the action forms part of its 2026 enforcement priority to hold to account those responsible for the collapse of First Guardian and Shield.

ASIC adds that the ongoing investigations are among the largest and most complex it has undertaken. Court says the regulator has now commenced 17 proceedings linked to those investigations and expects to take further action.

Our earlier article on the UK Top 100 financial adviser ranking highlighted how wealth advice firms are seeing stronger sales and client growth as tax and estate planning becomes more complex. It noted that policy and rule changes are driving more individuals—especially business owners—to seek professional guidance, raising the bar for advice quality and compliance across the sector.

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