The Australian Securities and Investments Commission (ASIC) has banned financial adviser Milutin Petrovic for six years following serious breaches of client obligations at the now-liquidated United Global Capital.
ASIC found Petrovic failed key advice requirements when recommending clients invest retirement savings into products linked to his employer. The regulator determined he provided defective advice that prioritised his licensee’s interests over those of his clients.
According to the regulator, the adviser’s misconduct centred on recommendations for clients to establish self-managed superannuation funds and invest significant portions of retirement savings in the Global Capital Property Fund Limited, a related investment company now in liquidation.
“Mr Petrovic asserted to clients that he was only providing limited advice as they sought ‘execution only advice’, despite telling clients he was required to act in their best interests,” ASIC stated in a press release.
The regulator found Petrovic provided comparisons between clients’ existing superannuation funds and recommended investments, demonstrating how much better off they would be by switching arrangements.
ASIC determined Petrovic failed to act in clients’ best interests, provided inappropriate advice, prioritised his licensee’s interests ahead of clients, made misleading statements, and issued defective Statements of Advice.
“By purporting to limit the advice in the manner he did, Mr Petrovic provided clients with Statements of Advice that were defective and therefore engaged in misleading and deceptive conduct,” ASIC said.
The ban prevents Petrovic from providing financial services, controlling financial services businesses, or performing functions in financial services operations. The prohibition took effect from January 15, 2025, was temporarily stayed in February, then resumed in March when the stay was dissolved.
Petrovic has applied to the Administrative Review Tribunal for review of ASIC’s decision. The application was heard in June and July 2025, with the decision reserved.
The case forms part of broader enforcement action against United Global Capital. In June 2024, ASIC banned the company’s director Joel Hewish for 10 years and cancelled its licence. The Administrative Review Tribunal upheld Hewish’s ban in August 2025.
United Global Capital entered voluntary administration in July 2024 before creditors resolved to wind up the company in August. The Federal Court ordered Global Capital Property Fund Limited into liquidation in October 2024.
ASIC has warned consumers about high-pressure sales tactics and online advertisements designed to lure people into inappropriate superannuation switching advice. The regulator advises United Global Capital clients to seek independent advice regarding their circumstances.
