Court Pulls Plug on $274 Million First Guardian Fund as ASIC Moves to Expose Misconduct ⋅ Crypto World Echo
The FederalCourt has appointed liquidators to wind up Falcon Capital Limited and its FirstGuardian Master Fund, following an application by the Australian Securities andInvestments Commission (ASIC),while the regulator simultaneously advances plans to increase transparency inthe financial sector.
Court Forces Liquidationof Falcon Capital as Investors Remain Locked Out
RossBlakeley and Paul Harlond of FTI Consulting will serve as liquidators forFalcon Capital, the First Guardian Master Fund, and related unregisteredsubsidiary funds. The court also appointed Paul Allen of PKF Melbourne asreceiver to the property of David Anderson, a director of Falcon.
This actionescalates ASIC’s February 2025 intervention when the regulator obtained courtorders freezing the assets of Falcon, First Guardian, and Anderson amidconcerns about fund management and investor risks.
ASIC’sinvestigation revealed approximately $274 million of First Guardian’s valuecame from significantly overdue cash receivables, while over $23 million wasallegedly paid to marketing entities contrary to investor representations. Theregulator also uncovered potential conflicts of interest involving Anderson’spersonal financial interests in entities receiving fund investments.
🇦🇺 ASIC | ASIC Appoints Liquidators to Falcon Capital Limited Amid Concerns Over Investor Risks• ASIC appoints Ross Blakeley and Paul Harlond as liquidators of Falcon Capital Limited and related funds following concerns about management and operation of First Guardian Master…
— RegFlow Hub (@RegFlowHub) April 10, 2025
Investorshave been unable to access their funds since May 2024, when Falcon suspendedmost withdrawals from First Guardian. Many investors were reportedly directedto the fund through lead generators who connected them with financial advisersrecommending they roll superannuation assets into retail choice funds orestablish self-managed superannuation funds specifically to invest in FirstGuardian.
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ASIC Proposes PublishingFirm-Level Breach and Complaints Data
In aseparate development, ASIC has launched a consultation on plans to publishdashboards containing firm-level data on reportable situations and internaldispute resolution in the second half of 2025.
Theproposal, detailed in ConsultationPaper 383, aims to enhance transparency and accountability whilehighlighting areas with concentrations of significant breaches and complaints.ASIC believes this will enable financial firms to target improvements incompliance, consumer outcomes, and overall performance.
“PublishingReportable Situations and Internal Dispute Resolution data will encourage firmsto lift their game,” said ASIC Commissioner Alan Kirkland. “It alsoprovides consumers and investors access to this data at firm level, further encouragingconfident and informed participation in the financial system.”
Theinitiative aligns with ASIC’s Corporate Plan 2024-25, which committed topublishing firm-level internal dispute resolution data and developing aframework for ongoing publication of reportable situations data.
ASIC isseeking stakeholder feedback on the proposals by May 14, 2025, as part of itsbroader strategy to improve consumer outcomes in the financial sector.
This article was written by Damian Chmiel at www.financemagnates.com.
