ASIC Bans Former Adviser Rhys Reilly for 10 Years

ASIC has banned former financial adviser Rhys James Rolls Reilly from providing financial services for 10 years and suspended the AFS licence of Conexus Group Pty Ltd until 31 July 2026.

The ban and licence suspension took effect on 8 April 2026.

ASIC found that Mr Reilly engaged in serious misconduct, including:

• accepting conflicted remuneration;
• making false or misleading statements to clients;
• failing to act in clients’ best interests; and
• prioritising his own interests over those of clients.

First Guardian Advice and Superannuation Rollovers

ASIC said the misconduct primarily related to advice recommending investment in the First Guardian Master Fund, including advice for clients to roll over significant superannuation balances into the product.

ASIC found that Mr Reilly failed to properly investigate whether First Guardian was suitable for certain clients and exposed them to unacceptable levels of risk.

ASIC also found that Mr Reilly accepted $100,000 in conflicted remuneration and did not disclose those payments to clients, while recommending that clients invest most, or all, of their superannuation into First Guardian.

In addition, ASIC found that certain Statements of Advice were false or misleading because they stated that no benefits capable of influencing the advice had been received, when that was not true.

ASIC also suspended Conexus Group’s AFS licence because Mr Reilly was the sole director and person in control of the company at the time of the decision.

ASIC said the suspension is intended to allow Conexus to:

• sever its relationship with Mr Reilly; and
• update its licence arrangements.

ASIC also found that Mr Reilly failed to oversee advisers operating under Reilly Financial’s authorisation who were advising clients to invest in the Shield Master Fund and First Guardian Master Fund.

This is another important development for investors who were advised to switch superannuation, establish an SMSF, or invest retirement savings into Shield or First Guardian.

What Shield and First Guardian Investors Do

Around 11,800 people invested money, including superannuation, into the Shield and First Guardian investments.  However, only a fraction of these investors have lodged complaints to recover compensation.

If you received advice to invest into Shield or First Guardian, please contact Financial Dispute Legal to discuss your circumstances and rights to recover compensation.  For assistance, contact FD Legal on 1300 433 533 or email enquiry@fdlegal.com.au

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