ASIC bans Joel Hewish and cancels UGC’s license due to improper financial advice and speculative investment schemes.
ASIC bans Joel Hewish and cancels UGC’s license due to improper financial advice and speculative investment schemes.
ASIC bans Joel James Hewish from providing financial services for ten years and revoked his company’s Australian financial services (AFS) license, United Global Capital Pty Ltd (UGC). ASIC found that UGC’s representatives advised clients to set up self-managed superannuation funds (SMSFs), transfer their existing superannuation into these SMSFs, and invest in speculative ventures linked to Hewish.
ASIC’s investigation revealed that UGC used a misleading onboarding process to lure clients into investing their retirement savings in UGC-related products. Representatives recommended speculative investments, including in Global Capital Property Fund Limited, where Hewish had an interest. UGC also attempted to evade personal advice obligations and failed to act in clients’ best interests, providing inappropriate advice. The company violated several general obligations as an AFS licensee, including ensuring services are provided efficiently, honestly, and fairly and managing conflicts of interest.
ASIC banned Hewish, citing his role as UGC’s responsible manager and key person, lack of competence, and disregard for compliance with financial services laws. Hewish and UGC have appealed the decision to the Administrative Appeals Tribunal (AAT). ASIC served the order on June 3, 2024, but UGC and Hewish delayed publication with interim orders, which the AAT lifted on July 25, 2024. Hewish’s ban is now recorded on ASIC’s banned and disqualified register.
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 continues. UGC, based in Melbourne, has held AFS license no. 496179 since August 18, 2017. Hewish has been a director of UGC since November 8, 2011, and an authorized representative since August 21, 2017. Global Capital Property Fund Limited has been an authorized representative of UGC since March 25, 2020.
In 2022, ASIC issued interim stop orders preventing the offer and issue of shares to retail investors under GCPF’s prospectus due to a deficient target market determination. Despite UGC’s license cancellation, it remains effective for limited purposes, including UGC’s membership in AFCA until May 2025 and maintaining insurance coverage for clients.
On June 20, 2024, ASIC obtained interim orders from the Federal Court to freeze UGC and GCPF’s assets, with proceedings adjourned to August 6, 2024. Clients of UGC are advised to seek independent advice and consider lodging complaints with the Australian Financial Complaints Authority if concerned about the advice received from UGC.
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