First Guardian Master Fund

Short Summary : 

First Guardian Master Fund held around $590 million of investor money when it went into Liquidation in 2025. Approximately 6,000 investors were funnelled into the fund through superannuation or self-managed super funds (SMSFs). In nearly all cases, investors were unaware they were investing into First Guardian Master Fund, which was a high risk investment. Allegations surrounding the management of these funds continue to be investigated,while failures have been identified across multiple levels of the Financial Services system. Financial Advisers, Trustees, Licensees and the Research House have each sought to shift responsibility, whilst thousands of affected Australians remain out of pocket and continue to seek accountability and compensation.   

What is the First Guardian Master Fund? 

 
The First Guardian Master Fund was a registered managed investment scheme established in 2019. Financial Advisers invested their clients’ super through APRA-regulated funds, or a Self-Managed Super Fund. Unlike traditional industry or retail super funds, First Guardian itself was not a superannuation fund. Instead, it was an underlying investment option made available through superannuation platforms administered by trustees including Diversa Trustees, Netwealth and Equity Trustees. 

The Fund was operated by Falcon Capital Limited, which acted as the Responsible Entity (RE) of the managed investment scheme.

As Responsible Entity, Falcon Capital was responsible for:

  • Managing the assets of the fund.
  • Acting in the best interests of investors.
  • Ensuring the fund complied with the Corporations Act.
  • Overseeing the investment strategy and administration of the fund.

ASIC identifies Falcon Capital as the operator of First Guardian and has stated that the company is now in liquidation. Court-appointed liquidators from FTI Consulting are responsible for winding up both Falcon Capital and the First Guardian Master Fund.

The directors of Falcon: 

David Anderson, 

9th November 2012 – Onwards

Principal director throughout the operation of First Guardian. 

Simon Selimaj

10th April 2006 – Onwards

Co-founder of Falcon Capital and Director during the operation of First Guardian.

The Allegations

ASIC has commenced multiple investigations and court proceedings concerning the operation and distribution of First Guardian. Importantly, these are allegations before the courts unless otherwise admitted or determined.

ASIC’s allegations include:

  • Significant portions of the fund’s reported assets consisted of overdue receivables whose value was questionable.
  • More than $23 million was allegedly paid to entities said to provide marketing services, contrary to representations made to investors.
  • Investor funds were allegedly invested into related-party transactions and investments that created conflicts of interest.
  • Financial advisers and lead generators allegedly encouraged investors to roll over their superannuation into First Guardian through high-pressure marketing and conflicted advice.
  • ASIC is also investigating or has commenced proceedings against various superannuation trustees, financial advisers, auditors and other entities involved in making First Guardian available to investors or overseeing the investment.

Separate civil penalty proceedings have also been commenced against several superannuation trustees, with ASIC alleging failures in due diligence, ongoing monitoring and acting in members’ best financial interests.

Recovery and Compensation

Liquidation 

The First Guardian Master Fund and Falcon Capital are being wound up by FTI Consulting. Liquidators are attempting to identify, recover and realise assets that may ultimately be distributed to investors. However, recoveries remain uncertain and are expected to take considerable time.

Australian Financial Complaints Authority (AFCA) & Compensation Scheme of Last Resort (CSLR)

Investors who received personal financial advice may be able to lodge a complaint with the Australian Financial Complaints Authority (AFCA) against their financial adviser or Australian Financial Services Licensee. Where misconduct is established, AFCA may award compensation. Where an AFCA determination is made against a financial firm that is unable to pay, some investors may be eligible to seek compensation through the Compensation Scheme of Last Resort, subject to payment limits of $150,000.

Trustee Compensation

ASIC has commenced civil penalty proceedings against several superannuation trustees, including Diversa Trustees and Equity Trustees, seeking declarations, compensation orders and civil penalties. If successful, these proceedings may provide an additional pathway for compensation for affected members, although the outcome will ultimately depend on the Federal Court.