The Australian Securities and Investments Commission (ASIC) has issued an update for investors in the First Guardian Master Fund.

ASIC has applied to the Federal Court for the appointment of liquidators to Falcon Capital Limited, 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.

This action follows previous action that ASIC took in February 2025 to help protect investor funds while an investigation is continuing. On 24 February 2025, the Federal Court made orders freezing the assets of Falcon, First Guardian and Mr Anderson.

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 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 Mr 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; and
• 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.  Some consumers received advice to set up self-managed superannuation funds (SMSFs) to facilitate investments into First Guardian.