South Melbourne FC has confirmed that President Nicholas Maikousis has resigned his post amid personal business issues related to a ten-year ban imposed by the Australian Securities and Investments Commission (ASIC).

The club made the announcement on 1 September, confirming that Maikousis has resigned from his post “as a Director and President effectively immediately, in order to focus on his personal business”.

South Melbourne stated that “Bill Papastergiadis will be overseeing the operation of the Board as Chairman until the upcoming AGM” while thanking Maikousis “for his contribution to the club over many years”.

The announcement comes in the wake of ASIC issuing a ten-year ban to Maikousis as director of MWL and cancelling MWL’s Australian Financial Services licence over conduct in relation to the Shield Master Fund (Shield).

ASIC confirmed in a media release they found MWL operated what it called a “low cost advice project” from 2021 to receive referrals from telemarketers/lead generators and to recommend clients invest their superannuation in Shield.

It reported that MWL recommended Shield to more than 750 clients between September 2021 and February 2024, who collectively invested $155 million.

As part of serious compliance failures, ASIC found MWL:

– did not take reasonable steps to ensure its advisers provided advice that was appropriate and in the best interests of clients

– provided template statements of advice (SOAs) to MWL advisers that contained misleading representations of Shield’s past performance

– failed to properly assess Shield when it was added to MWL’s approved product list

– was incentivised to recommend Shield

– had undisclosed bonus arrangements with its financial advisers who recommended Shield

– did not disclose its arrangements with lead generators in some SOAs nor in Financial Services Guides

– failed to have adequate arrangements in place to manage conflicts of interest

– failed to advise clients of their rights to complain to AFCA.

ASIC found Maikousis was not only responsible for the establishment of the “low cost advice project” but also the driving force behind it; that he was on the investment committee that approved Shield and that he did not have an adequate appreciation for a financial services business’ fundamental obligations to its clients.

ASIC has banned Maikousis for ten years from providing financial services while, effective from 25 September, he is also banned from controlling an entity that carries on a financial services business or performing any function involved in the carrying on of a financial services business.

Maikousis and MWL have the right to apply to the Administrative Review Tribunal for a review of ASIC’s decisions.

Source: ASIC