Falcon Capital and First Guardian enter liquidation

Falcon Capital is set to be wound up after the Federal Court appointed Ross Blakeley and Paul Harlond of FTI Consulting as liquidators, ordering them to wind up the firm, the First Guardian Master Fund and a number of related unregistered subsidiary funds.

In March, ASIC applied to the Federal Court for the appointment of liquidators to Falcon Capital, as well as the appointment of a receiver and manager to the personal property of one of Falcon’s directors, David Anderson.

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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,” the corporate regulator said in March.

Last week, the regulator said it took this action because it was “concerned about Falcon’s management and operation of First Guardian and the associated risks to investors”.

The Federal Court also ordered that Paul Allen of PKF Melbourne be appointed as receiver to the property of Anderson.

In May 2024, Falcon suspended the processing of applications and withdrawals from First Guardian subject to some limited exceptions. Since that time, the vast majority of investors have been unable to access their funds.

“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,” the regulator said.

“Some investors received advice to set up self-managed superannuation funds (SMSFs) to facilitate investments into First Guardian.”

The related unregistered subsidiary funds are:

• First Guardian Global Income Fund.
• First Guardian Australian Development Fund.
• First Guardian Absolute Equities Fund.
• First Guardian Trulet Innovation Fund.
• First Guardian Global Equity Fund.