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Super funds collapse: $1.2B lost, thousands unaware
30 Jan
Summary
- Two major investment funds collapsed owing $1.2 billion.
- Over 12,000 people may be affected, but few complaints filed.
- Directors accused of siphoning millions and moving funds offshore.
Australians are urgently advised to review their superannuation accounts due to the collapse of two significant investment funds, First Guardian and Shield Master, in May 2024. These funds went under owing approximately $1.2 billion, with over 12,000 individuals potentially impacted. Concerns are high as only 1,860 complaints have been lodged with the Australian Financial Complaints Authority (AFCA).
Directors of First Guardian face allegations from ASIC, including siphoning millions into personal accounts and transferring funds overseas after an investigation began. Liquidators have recovered only $1.6 million from the $1.2 billion collapse. One director allegedly purchased a $9 million mansion, while another had a Lamborghini registered in his name, purportedly bought with fund money.
Melinda Kee, a victim and administrator for Save Our Super, emphasizes that lodging a complaint with AFCA is crucial for compensation. She warns that strict deadlines apply, and missing them could forfeit access to the Compensation Scheme of Last Resort, which offers up to $150,000. Ms. Kee estimates fewer than 1,000 individuals have come forward, suggesting the crisis is far more widespread.
However, some investors may receive compensation. Over 1,000 people who invested in First Guardian through Netwealth will share $100 million, with Netwealth repaying 100% of investments by January 30, 2026. Macquarie Group will pay $321 million to approximately 3,000 Shield investors. Despite these efforts, many investors remain unaware their funds are lost or frozen.
