Hundreds of millions of dollars of Australians' superannuation invested in the First Guardian Master Fund (First Guardian) were exposed to high-risk, undocumented, and conflicted investments, ASIC alleges in new Federal Court proceedings.
ASIC has commenced civil penalty proceedings against former managing director and CEO David Anderson and former executive Chairman and Chief Investment Officer Simon Selimaj alleging serious and widespread failures in the management and oversight of First Guardian.
ASIC is also seeking leave of the Court to commence civil penalty proceedings against Falcon Capital Limited (in liquidation) (Falcon Capital), the responsible entity for First Guardian.
ASIC alleges that between August 2019 and April 2025, more than 6,000 Australians invested more than $600 million in First Guardian, largely from their superannuation.
ASIC alleges Falcon Capital invested around $270 million through unregistered underlying funds it controlled, with substantial amounts paid to a range of entities and ventures without appropriate safeguards.
ASIC alleges Falcon Capital made investments with inadequate documentation, insufficient security, inadequate due diligence, and unmanaged conflicts of interest.
These included investments in hospitality businesses and technology ventures in which Mr Anderson had a personal interest, as well as payments of at least $57 million to entities controlled by Mr Anderson or Mr Selimaj.
ASIC Chair Sarah Court said, ‘Hundreds of millions of dollars were allegedly channelled into high-risk and conflicted investments with inadequate scrutiny, oversight, or governance and without regard to members’ best interests.
‘These were Australians’ retirement savings, yet ASIC alleges millions of dollars were handed over before contracts were even in place, including for investments linked to those running the fund,’ the Chair said.
ASIC’s allegations include that:
- Falcon Capital misled investors in its product disclosure statements by representing that First Guardian had robust investment processes in place.
- First Guardian invested in Rogue Traders Group restaurants without adequate due diligence or security, and in Fox Friday Brewing, despite representations that it would not invest in companies operating businesses involving alcoholic beverages.
- between July 2020 and July 2022, at least $15 million was paid to Maleo Indonesia on an undocumented and unsecured basis.
- Falcon Capital entered into agreements with Maleo Singapore that purported to create assets worth $188 million on First Guardian’s balance sheets but had no or little value.
- Falcon Capital paid at least $27.9 million towards property developments, on an undocumented, unsecured basis, and without adequate due diligence.
- Mr Anderson controlled investment decisions without meaningful oversight, failed to disclose conflicts of interest and failed to act in members’ best interests.
- Mr Selimaj failed to act in members’ best interests by inadequately monitoring Falcon Capital’s activities.
These proceedings form part of ASIC's 2026 enforcement priorities to hold those responsible to account for the collapse of the First Guardian and Shield Master Funds (Shield) and to address poor practices in private credit.
‘The allegations in ASIC’s case against First Guardian highlight the problems ASIC has identified in private credit, including poor governance, conflicts of interest and weak oversight, and the consequences these can have for Australians’ investments and retirement savings.
‘ASIC has now commenced proceedings against key former officeholders of both Shield and First Guardian, and we will continue to pursue those we believe are responsible for putting Australians’ retirement savings at risk,’ the Chair said.
ASIC is seeking declarations, civil penalties and disqualification orders. To ensure any available funds are returned to investors, ASIC will not seek to enforce any penalty obtained against Falcon Capital.
ASIC’s investigations into the matters connected to First Guardian and Shield are continuing.
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Background
First Guardian was a registered managed investment scheme for which Falcon Capital was the responsible entity. Funds were invested through a series of unregistered underlying funds that then made investments, including in private credit, property, and private equity.
Falcon Capital froze redemptions from First Guardian in May 2024. In February 2025, ASIC obtained interim orders freezing the assets of Falcon Capital and Mr Anderson (25-027MR) and in April 2025 ASIC obtained orders for Falcon Capital and First Guardian to be wound up (25-055MR). ASIC has also obtained orders appointing receivers to the personal property of Mr Anderson and Mr Selimaj.
Over 1,000 investors have had over $100 million of their invested capital in First Guardian returned after Netwealth entered into a Court Enforceable Undertaking with ASIC (26-197MR). ASIC has also commenced proceedings against Equity Trustees Superannuation Limited (26-101MR) and Diversa Trustees Limited (25-296MR) seeking compensation for investors in First Guardian.
Because Falcon Capital is in liquidation, ASIC is seeking leave from the Court to commence proceedings against the entity.
Consumer information
ASIC has issued a consumer alert warning amid increasing concerns that people are being enticed to invest their retirement savings into complex and risky schemes: Consumer alert (25-120MR). Be super smart, visit ASIC’s Moneysmart campaign page.
ASIC has actively sought to promote better practices in the private credit space and tackle increasing risks in this space as identified in Report 814 Private Credit in Australia (REP 814). ASIC published ten key principles of private credit done well in June 2026 (ASIC puts private credit on notice, ahead of 30 June valuations and reporting).
Stay Updated: ASIC will post important updates on its dedicated webpage: First Guardian Master Fund.