ASIC sues another former Venture Egg adviser

ASIC has launched civil penalty proceedings against former financial adviser Osama Saad, alleging he participated in schemes designed to avoid conflicted remuneration laws and provided unsuitable advice that directed hundreds of clients' superannuation into the collapsed First Guardian Master Fund.

Saad was an authorised representative of Interprac Financial Planning between 17 June 2016 and 31 December 2021 and provided financial advice to retail investors through Venture Egg.

The regulator alleges Saad's entities, Atlas Marketing and United Capital, received about $34 million from entities connected to the First Guardian and the Shield Master Funds, with some of the funds allegedly used for his personal benefit and that of associated individuals and entities.

ASIC also alleges money was directed towards marketing and lead-generation businesses that referred thousands of prospective clients to Venture Egg and Financial Services Group Australia, which recommended investments in Shield, Fist Guardian or both.

ASIC chair Sarah Court said the alleged conduct struct at protections intended to ensure advice is not influenced by financial incentives.

"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," Court said.

Between February and December 2021, ASIC alleges Saad advised 217 retail clients to roll over more than $25 million of superannuation into First Guardian.

The regulator alleges the advice failed to meet best interest obligations, was inappropriate and places Saad's interests ahead of those of his clients.

"We allege Mr Saad participated in schemes to avoid these laws, and his companies were paid tens of millions of dollars by entities linked to First Guardian and Shield," Court said.

ASIC is seeking declarations and pecuniary penalties, as well as orders preventing Saad from providing financial services and disqualifying him from managing corporations.

The proceedings form part of ASIC's broader enforcement response to the collapse of First Guardian and Shield, with the regulator describing its investigation as among its largest and most complex.

"We have now commenced 17 proceedings in connection with our ongoing investigations, and we expect to take further action," Court said.