Australia Bans Adviser Over Collapsed Property Fund

Australia‘s market regulator has imposed a six‑year prohibition on adviser Milutin Petrovic from offering or controlling financial services, after finding he breached core advice duties and misled clients, putting retirement savings at risk. The Australian Securities and Investments Commission (ASIC) said Petrovic’s conduct promoted products tied to his former licensee, United Global Capital Pty Ltd (UGC), which has since gone into liquidation.

Ban timeline

ASIC confirmed the ban commenced on 15 January 2025, was stayed on 28 February 2025, and recommenced on 26 March 2025 following dissolution of the interim stay order. The prohibition covers providing financial services, controlling an entity that conducts a financial services business, and performing any function in such a business.

Investigators concluded Petrovic steered clients to set up SMSFs and allocate significant balances to Global Capital Property Fund Limited (GCPF), later placed into court‑ordered liquidation in October 2024 with FTI Consulting appointed as liquidators. ASIC found he claimed to give “execution only” help while delivering tailored comparisons and forward projections that encouraged rollovers from existing super funds, contravening best‑interest and appropriateness obligations and resulting in defective Statements of Advice.

Misleading representations

ASIC stated Petrovic issued Statements of Advice that were defective and therefore amounted to misleading and deceptive conduct, including representations about acting in clients best interests and estimates of GCPF returns. The regulator said these communications supported switching recommendations despite being framed as limited‑scope assistance.

Petrovic has sought merits review in the Administrative Review Tribunal, with hearings held from 30 June to 2 July 2025; the decision has been reserved and remains pending. An application for stay and confidentiality orders was withdrawn, and the six‑year ban currently remains in force.

UGC collapse and fund freeze

UGC entered voluntary administration on 5 July 2024, and creditors resolved to wind up the company on 9 August 2024, with SV Partners appointed as liquidator. Earlier, ASIC obtained Federal Court asset‑freezing orders on 20 June 2024 over both UGC and GCPF and pursued court action that culminated in GCPFs wind‑up orders on 3 October 2024, appointing FTI Consulting as liquidators.

Prior stop orders and risks

ASIC issued multiple interim stop orders on GCPF share offers in July and September 2022 over disclosure and target‑market deficiencies, citing risks to retail investors and concerns about highly speculative projects and conflicts. Court materials noted potential losses on projects and risks of value leakage to related parties to the detriment of shareholders.

In a connected matter, the Tribunal on 4 August 2025 upheld ASIC‘s 10‑year ban on UGC director Joel James Hewish for conduct involving recommending clients establish SMSFs and invest in speculative related products; Hewish may still seek further appeal avenues. ASIC’s broader investigation into UGC, Hewish, and associated entities remains ongoing.

Consumer safeguards

The case illustrates how SMSF complexity can be exploited to preference affiliated schemes over client interests, reinforcing the need for strict fiduciary and disclosure compliance in SMSF advice. Regulators emphasize that “execution‑only” support cannot include tailored comparisons or projections, and defective Statements of Advice may constitute deceptive conduct.