Fund Regulatory Update

Regulatory Updates

Three advisers and an unlicensed SMSF scheme in court

The Federal Court has wound up an unlicensed scheme, MyWealth Manager, that was recommending investors put money into a self-managed superannuation fund (SMSF). Three former financial advisers were involved, who are now barred from taking client funds after the Australian Securities and Investments Commission (ASIC) investigation.

MyWealth Manager was, since 2017, advising clients of MCube Planners to roll out of their superannuation funds, set up an SMSF, and invest in MyWealth Manager. The scheme raised around $7 million from 55 investors. The funds were not invested as advertised with almost all of the funds misappropriated by the advisers operating the scheme. The scheme has been ordered closed.

The three former financial advisers are Mustafa Mohammed, his wife Mahek Mustafa, and his brother Mubashir Mohammed. The related companies include MyWealth Manager Financial Services (trading as MyWealth Manager) and 3M Financial Planning (trading as MCube Planners). The advisers currently live in India, were found to have breached the Corporations Act by operating an unregistered scheme and not holding an Australian financial services (AFS) licence.