The Australian Securities and Investments Commission (ASIC) has applied to the Federal Court for the appointment of liquidators to Falcon Capital, the responsible entity for the First Guardian Master Fund, and for orders directing the liquidators to wind up First Guardian.
ASIC is also seeking the appointment of a receiver and manager to the personal property of one of Falcon’s directors, David Anderson.
In February, ASIC sought for the assets of Falcon, First Guardian and Anderson to be frozen, with the court making orders to that effect on 24 February.
“ASIC is concerned about the management and operation of First Guardian and the associated risks to investors. Withdrawals from First Guardian have been suspended with limited exceptions since May 2024,” ASIC said on Monday.
The regulator has alleged that:
- Approximately $274 million of First Guardian’s value arises from cash receivables in respect of which payments are many months late.
- In excess of $23 million of First Guardian’s assets appear to have been paid to entities purportedly providing marketing services, which appears contrary to representations made to investors.
- First Guardian has invested in entities which Anderson had an association with or financial interest in and Falcon appears to have failed to recognise and manage consequent conflicts of interest.
- Investors may have been exposed to classes of assets that differ from what was disclosed to them at the time of making their investment.
- Investors may have been misled about the security of their investment and likely returns.
The matter has been listed for hearing on 9 April 2025.
“ASIC’s investigation of First Guardian is continuing. ASIC’s investigation to date suggests that many investors were called by lead generators and referred to personal financial advice providers who advised them to roll their superannuation assets into a retail choice superannuation fund and then invest into First Guardian,” ASIC said.
“Some consumers received advice to set up self-managed superannuation funds (SMSFs) to facilitate investments into First Guardian.”
Last month, following an ASIC application, the Federal Court made interim orders freezing certain assets of financial adviser Ferras Merhi in connection with its investigations concerning certain managed investment schemes, including First Guardian.
Merhi controls Venture Egg Financial Services, and both he and Venture Egg are authorised representatives of Interprac Financial Planning. He also controls Financial Services Group Australia, which also holds an AFSL.
On the same day, the Federal Court also made interim orders freezing certain assets of Osama Saad, former director of Aus Super Compare and Atlas Marketing, both of which are now in liquidation, which also had connections with First Guardian.
ASIC added that, on 11 March 2025, Falcon published an update to its investors concerning the freezing orders obtained by ASIC and stated it was currently working with its advisers to develop a plan to implement an orderly wind down of First Guardian.
I too have 99% of my super invested. I find it very difficult to follow what has happened and what is taking place and us investors are left in limbo in the meantime. There needs to be a site that we can access for all members to obtain information in one place. so far ASIC’s site lists most of the information. My suggestion is to gain access to court hearings via link if you are interested in following the court hearings. Federal Court in Melbourne. To all that are in the same situation I wish you all the best of luck in obtaining your funds back.
I can find no information on the potential to lose all or a substantial portion of my Super. We are left in limbo contemplating worst case scenarios. I can’t even find a discussion thread on line.
All my super is with them.
So what happens to us inocent people that believed their finance advisor & super company that now may have nothing ….what can we do ? Where do we stand ?
Looks like another increase to the CSLR levy I guess.
Is it advice failure? Greedy and stupid people will always exist regardless of what regulatory compliance or supervision is in place. It is certainly product failure of greedy and stupid people who have finally been caught and need to have more than their assets frozen as the money has already been hidden offshore. ASIC new about this back in 2021 when advisers started telling them and 4 years later, we are still waiting for them to do something. The licensees who allowed this to occur and profited from it need to be made an example of too.
yeah they’ll make an example of them by sending us the bill lol