Allegations of Misconduct in the Financial Advice Sector Under ASIC Scrutiny Concerns have been raised regarding alleged regulatory breaches and improper conduct within the financial advice sector involving an individual operating through a network of

Media Alert

Concerns have been raised regarding alleged regulatory breaches and improper conduct within the financial advice sector involving an individual operating through a network of related companies and trusts. The conduct reportedly impacts both former employees and consumers who have purchased financial products, primarily insurance and superannuation, through these entities.

According to documentation and records provided to relevant authorities, the matter involves long-term financial advisers previously associated with National Sterling, a company formerly holding an Australian Financial Services Licence (AFSL). The company was fined $1 million by the Australian Securities and Investments Commission (ASIC) in 2017 following a Parliamentary inquiry. It is alleged that the fine was not fully paid and that client accounts were subsequently transferred to another company, Premium Client Services Australia Pty Ltd, without consideration being paid for the transferred business.

It is further alleged that the owner of National Sterling, Mr. Tony Tzouvelis, has continued to derive approximately $2 million annually in commissions through various entities and trusts since that time. These funds are alleged to have been redirected through a complex structure of companies and trusts associated with property development and construction activities.

Documentation also indicates that financial adviser credentials belonging to others were allegedly used without their knowledge or consent to record business transactions and provide financial advice, despite Mr. Tzouvelis not being registered as a financial adviser. This allegedly resulted in advice being issued under the names of registered advisers without their authorisation.

Additional concerns raised include:

• The alleged charging of clients ongoing fees for no service.

• The use of corporate entities to obscure the movement of funds and avoid taxation obligations.

• The transfer of client bases and commissions without legal entitlement or disclosure.

• Alleged breaches of the Corporations Act and other financial regulations.

The individuals affected have reported the matter to ASIC and the Australian Taxation Office (ATO) and have commenced proceedings in the Federal Court in relation to unpaid entitlements and other claims. Complaints have also been lodged regarding ASIC’s response to information supplied over the past two years.

Evidence supplied to authorities reportedly includes financial records, client correspondence, voice recordings, and accounting documents that purport to substantiate the allegations of improper conduct, false representation, and misuse of professional credentials.

The matter raises broader concerns about regulatory oversight, enforcement capacity, and the protection of consumers and financial professionals within Australia’s financial services sector.

For further information or access to supporting documentation, media representatives may contact the parties providing the information for independent verification and review.

This matter is currently in court:

COURT 6E Level 6