THIS IS NOT A GAME OF SNAKES & LADDERS
ASIC
ASIC is Australia’s financial services regulator. Questions have been raised about the timeliness of its intervention, oversight of trustee and platform due diligence, surveillance of managed investment schemes, and supervision of the advice and research chain. Many investors believe earlier action on emerging risks and complaints may have reduced consumer losses. Most enforcement action, including asset freezes, licence cancellations and court proceedings, occurred only after significant losses had already been incurred.
Falcon Capital (responsible entity)
Failed in its core duties as a responsible entity, allowing mismanagement, late suspension of redemptions, and questionable related-party conduct.
First Guardian (the fund)
Operated with poor governance, opaque assets, and inadequate investor communication, leading to collapse and frozen withdrawals.
Research Houses
Issued positive ratings on high-risk, illiquid products, enabling wide distribution and reliance by advisers.
Auditors
Auditors are an important safeguard within Australia’s financial system. They are responsible for independently examining financial information and reporting whether it fairly reflects a fund’s financial position, providing an important layer of accountability and transparency for investors and regulators.
Trustees
Onboarded and maintained First Guardian on super platforms without sufficient due diligence or ongoing monitoring.
Licensee
Did not adequately supervise or monitor authorised reps, allowing systemic mis-selling to continue.
Advisers
Manipulated into selling a MIS product and failed to protect investors’ interests, breaching their duty of care to clients.
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