25/07/2025

Thousands of Australians have been left in limbo by the failure of the First Guardian Master Fund and the Shield managed investment schemes. Around 12,000 investors, many approaching retirement, are facing losses of over $1.2 billion.

We support ASIC and the liquidators in their efforts to recover every dollar possible and to hold those responsible to account. That work is essential. We also respect that these matters remain before the courts.

Reports about these cases highlight a troubling pattern. It’s one I’ve heard far too often since becoming Shadow Minister for Financial Services. Withdrawals were frozen. Warnings were raised, sometimes for months, even years. But ASIC acted too late. These delays demand a clear explanation.

It is also deeply concerning to hear reports these high-risk products were promoted as “safe and stable”. Aggressive sales tactics by unscrupulous actors then pressured customers to roll their super into these schemes.

Serious questions must be asked about every part of the system that allowed this to happen – from those promoting these products, to the platforms that enabled it, to the regulators meant to protect consumers.

In the October 2022–23 Budget, Labor promised to review the regulatory framework for managed investment schemes like First Guardian and Shield. That review was due over a year ago. No findings have been released. No action has been taken. Australians should expect and deserve better.

As we see so often, it is the little guy who pays the cost of these failures. Everyday Australians who saved for retirement, sought advice, and trusted the system to protect them.

Enforcement must be faster. Safeguards must be stronger. But that’s not enough. Australians deserve more than a quick fix. We need a serious examination of our regulatory framework, and of ASIC itself, to understand why warning signs keep being missed.

The Coalition stands ready to work with the Government to strengthen the system and restore trust. We can’t undo the damage, but we can work responsibly to fix the system that allowed it to happen.

I encourage anyone concerned about financial advice they’ve received to consider contacting the Australian Financial Complaints Authority:

• By calling 1800 931 678 (9am – 5pm AEST), or
• By Lodging a complaint online at www.afca.org.au