ASIC sues financial adviser over 34 million payment
- ASIC has sued former financial adviser Osama Saad for allegedly accepting $34 million in conflicted payments while advising clients to join failed fund schemes.
- The action follows the 2024 collapse of the Shield and First Guardian funds, which caused more than 200 investors to lose over $1 billion in retirement savings.
- Regulators state the payments violated conflicted remuneration rules designed to stop financial advisers from accepting commissions from recommended investment entities.
The Australian Securities and Investments Commission has filed a lawsuit against former financial adviser Osama Saad for allegedly receiving $34 million in conflicted payments after steering over 200 clients into failed investment schemes.
The legal action follows the 2024 collapse of the Shield and First Guardian funds, which cost thousands of Australian investors more than $1 billion after promising higher returns through unmentioned risky and illiquid assets.
"Conflicted remuneration laws are there to protect consumers by banning payments and other benefits that could influence the advice they receive or the financial products recommended to them," said ASIC Chairwoman Sarah Court.
Court filings allege that Saad used his connected corporate entities to circumvent consumer protection laws and collect tens of millions of dollars from parties linked directly to the two funds.
Regulators contend that high-pressure sales tactics and lead generators were actively used to push vulnerable Australians into shifting their retirement savings into the high-risk products.
Following the announcement, the ASIC regulatory enforcement action remains ongoing before the Federal Court of Australia.
Liquidators continue working to recover remaining assets for affected investors who suffered losses during the collapse of the two financial products.
