The Federal Court has ordered Falcon Capital Limited to be wound up and appointed Ross Blakeley and Paul Harlond of FTI Consulting as liquidators of Falcon and the First Guardian Master Fund, as well as related unregistered subsidiary funds.
The move follows an application by ASIC, which said it was concerned about Falcon’s management and operation of First Guardian and the associated risks to investors. The court also appointed Mr Paul Allen of PKF Melbourne as receiver to the property of David Anderson, a director of Falcon.
ASIC obtained orders in February to freeze the assets of Falcon, First Guardian and Mr Anderson to help protect investor funds while its investigation continues. In May 2024, Falcon suspended the processing of applications and withdrawals from First Guardian, subject to limited exceptions, and since then the vast majority of investors have been unable to access their money.
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 investors received advice to set up self-managed superannuation funds (SMSFs) to facilitate investments into First Guardian.
The unregistered subsidiary funds ordered to be wound up are:
– First Guardian Global Income Fund
– First Guardian Australian Development Fund
– First Guardian Absolute Equities Fund
– First Guardian Trulet Innovation Fund
– First Guardian Global Equity Fund
Investors and creditors can contact the liquidators at [email protected]. ASIC’s investigation is ongoing. The regulator is providing updates on its First Guardian Master Fund webpage: https://www.asic.gov.au/about-asic/asic-investigations-and-enforcement/enforcement-activities/first-guardian-master-fund/
Orders made by the court are available here: https://download.asic.gov.au/media/2l3kcrxj/25-055mr-asic-v-falcon-capital-limited-orders.pdf
Anyone wishing to provide information to assist ASIC’s investigation can email [email protected].
