Thousands of Australians lose superannuation after collapse of First Guardian and related schemes

More than 12,000 ordinary investors have been left facing reduced or frozen retirement savings after the collapse of three superannuation schemes, including the First Guardian Master Fund, which was placed into liquidation following court action by the corporate regulator.

Among those affected is 61‑year‑old former mining worker Phil Mazitelli, who said he transferred his superannuation to Australian Practical Super (AusPrac) in 2023 after responding to an advertisement promising better returns. He said his balance — which he expected to be about $240,000 as he prepared to retire and travel — was inaccessible when he tried to withdraw it this year and that he later discovered the First Guardian Master Fund had been wound up.

The Australian Securities and Investments Commission (ASIC) has said liquidators were appointed to Falcon Capital and the Federal Court ordered the wind‑up of First Guardian and its related funds in April after concerns were raised. The court also froze assets and made interim travel restraint orders against Falcon directors, including David Anderson and Simon Selimaj, on ASIC's application. ASIC said it has had more than 40 court appearances related to First Guardian and the Shield Master Trust.

ASIC's investigation, as outlined in court filings and regulatory statements, alleges a referral chain in which potential customers were steered to personal financial advice providers who recommended rolling superannuation into retail choice funds and then investing some or all of those assets into First Guardian. Between 2020 and 2024, the court heard, businesses associated with financial services operator Ferras Merhi received almost $40 million while advising clients to invest about $296 million into First Guardian and roughly $230 million into Shield. Merhi and related entities have appeared in the Federal Court amid ASIC proceedings.

Diversa, the trustee for AusPrac, said in a statement it understood members who had invested in a First Guardian Master Fund may be experiencing "stress, anxiety and feelings of uncertainty in response to significant financial losses." AusPrac is operated by Sequoia Financial Group and lists Diversa as its trustee. The trustee has been communicating with affected members as the liquidation and legal processes continue.

Regulatory filings and reporting by ASIC indicate that the fallout has been significant in scale and value. Conservatively, close to $1.2 billion of superannuation has been lost through failed schemes now in liquidation following ASIC's enforcement action, and thousands of Australians are said to be missing some or all of their retirement savings. One figure cited by people impacted and media reports places roughly 6,000 Australians as missing some or all of their super specifically after the First Guardian Master Fund collapse. Industry observers say the episode adds to concerns about gaps and loopholes that can expose retirement savings to risk.

Individuals affected by the wind‑ups described personal and financial disruption. Mazitelli, who said he has taken work as a truck driver since losing access to his super, told reporters he now expects to work for another decade before retiring. A Canberra couple, Simon and Annette Luck, said they could lose about $340,000 from the First Guardian Master Fund and are considering selling their mortgaged home and living in a caravan to compensate for the shortfall. "Absolutely gutted," Simon Luck said of the impact on plans to travel and pay off their house.

Those impacted have sought intervention and support. Mazitelli said he contacted his local member, the MP for Dawson, who he said agreed to advocate on his behalf. Consumer and retirement advocates have urged further scrutiny of advice and referral practices that may have channelled funds into high‑risk or opaque structures. The broader superannuation pool in Australia totals more than $4.2 trillion, making the protection and proper oversight of retirement savings a central policy and regulatory priority.

ASIC has pursued court remedies including the appointment of liquidators and receivers and interim asset freezes while investigations proceed. The regulator's statements and court orders have limited some directors' ability to move or access assets as litigation and insolvency administrators work through claims and recoveries. Legal processes remain ongoing and those appointed as liquidators will assess creditor claims, potential recoveries and whether funds can be returned to members.

Industry participants and some parliamentarians have signalled the need to review how retail advice and referral incentives operate, and whether further reforms are needed to strengthen protections around switching and channelling retirement savings. The affected members and consumer groups are also seeking clarity on the pace and extent of recoveries and on what additional government or regulatory actions might be available to assist those whose retirement plans have been disrupted.

ASIC's continuing court actions and the work of liquidators will determine the next steps for members seeking access to frozen balances and for recovery of assets. Until those processes conclude, thousands of Australians will face uncertainty over the timing and amount of any potential restitution and may need to alter retirement plans accordingly.