ASIC sues Osama Saad alleging conflicted remuneration avoidance schemes and advice failures

Key dates

2016-06-17

Saad became an authorised representative of Interprac Financial Planning, according to ASIC's background information.

2021-02-01

ASIC alleges the relevant advice period began, during which Saad advised retail clients to roll over superannuation into First Guardian.

2021-12-31

Saad's authorised-representative relationship with Interprac Financial Planning ended, according to ASIC's background information.

2026-10-07

ASIC commenced Federal Court civil penalty proceedings against Osama Saad.

Suggested considerations

• Compliance teams may wish to review adviser remuneration, referral, marketing and lead-generation arrangements for direct or indirect benefits linked to product recommendations, including payments made through related entities or third parties.
• Licensees should consider testing whether any benefit could reasonably influence the choice of financial product or advice strategy, and whether the arrangement falls within the conflicted-remuneration prohibitions in Part 7.7A Division 5 of the Corporations Act 2001.
• Advice businesses should consider targeted file reviews involving rollovers from superannuation into high-risk, illiquid or complex products, including assessment of best-interests compliance under section 961B, appropriateness under section 961G and the client-interest priority obligation under section 961J.
• Firms should consider tracing the full economic flow of adviser remuneration, referral fees, marketing funding and related-party payments rather than limiting testing to amounts shown on adviser or licensee invoices.
• Australian financial-services licensees may wish to reassess oversight of authorised representatives, referral partners and externally generated leads, including conflicts registers, product research, statements of advice and evidence supporting the client's circumstances and objectives.
• Relevant businesses should consider reviewing controls against ASIC Regulatory Guide 246, Conflicted and other banned remuneration, and preserving records that demonstrate why payment structures do not circumvent the statutory prohibitions.
• Product issuers and superannuation trustees may wish to review distribution and surveillance data for First Guardian, Shield and comparable products, and consider whether affected clients require remediation or referral to the appropriate complaints process.
• Compliance teams should monitor the Federal Court proceedings and ASIC's broader First Guardian and Shield enforcement program, noting that the allegations are unproven until determined by the Court.

What changed

This is an enforcement action rather than a new rule or amended requirement. ASIC alleges that Atlas Marketing and United Capital received benefits from entities connected with First Guardian and Shield, including payments allegedly used for personal benefit and to fund marketing and lead-generation businesses that referred prospective clients to advice firms. Independent industry reporting indicates that ASIC's pleaded allegations include arrangements involving approximately 6% of client investments in First Guardian and 8% of client money associated with Shield, although those allegations remain to be determined by the Court. The case reinforces ASIC's interpretation and enforcement focus under Part 7.7A of the Corporations Act 2001, including the conflicted-remuneration prohibitions and

Who is affected

• Australian financial advisers and authorised representatives providing personal advice to retail clients
• Australian financial advice licensees and responsible managers supervising authorised representatives
• Entities paying, receiving, arranging or disguising benefits connected with financial-product recommendations
• Marketing, lead-generation and referral businesses introducing retail clients to financial advisers
• Superannuation trustees and product issuers whose distribution arrangements involve adviser remuneration or referral payments

Related regulations

• Corporations Act 2001 (Cth), Part 7.7A Division 4
• Corporations Act 2001 (Cth), Part 7.7A Division 5
• Corporations Act 2001 (Cth), section 961B
• Corporations Act 2001 (Cth), section 961G
• Corporations Act 2001 (Cth), section 961J
• ASIC Regulatory Guide 246, Conflicted and other banned remuneration