The Federal
Court has appointed liquidators to wind up Falcon Capital Limited and its First
Guardian Master Fund, following an application by the Australian Securities and
Investments Commission (ASIC),
while the regulator simultaneously advances plans to increase transparency in
the financial sector.
Court Forces Liquidation
of Falcon Capital as Investors Remain Locked Out
Ross
Blakeley and Paul Harlond of FTI Consulting will serve as liquidators for
Falcon Capital, the First Guardian Master Fund, and related unregistered
subsidiary funds. The court also appointed Paul Allen of PKF Melbourne as
receiver to the property of David Anderson, a director of Falcon.
This action
escalates ASIC’s February 2025 intervention when the regulator obtained court
orders freezing the assets of Falcon, First Guardian, and Anderson amid
concerns about fund management and investor risks.
ASIC’s
investigation revealed approximately $274 million of First Guardian’s value
came from significantly overdue cash receivables, while over $23 million was
allegedly paid to marketing entities contrary to investor representations. The
regulator also uncovered potential conflicts of interest involving Anderson’s
personal financial interests in entities receiving fund investments.
Investors
have been unable to access their funds since May 2024, when Falcon suspended
most withdrawals from First Guardian. Many investors were reportedly directed
to the fund through lead generators who connected them with financial advisers
recommending they roll superannuation assets into retail choice funds or
establish self-managed superannuation funds specifically to invest in First
Guardian.
ASIC Proposes Publishing
Firm-Level Breach and Complaints Data
In a
separate development, ASIC has launched a consultation on plans to publish
dashboards containing firm-level data on reportable situations and internal
dispute resolution in the second half of 2025.
The
proposal, detailed in Consultation
Paper 383, aims to enhance transparency and accountability while
highlighting areas with concentrations of significant breaches and complaints.
ASIC believes this will enable financial firms to target improvements in
compliance, consumer outcomes, and overall performance.
“Publishing
Reportable Situations and Internal Dispute Resolution data will encourage firms
to lift their game,” said ASIC Commissioner Alan Kirkland. “It also
provides consumers and investors access to this data at firm level, further encouraging
confident and informed participation in the financial system.”
The
initiative aligns with ASIC’s Corporate Plan 2024-25, which committed to
publishing firm-level internal dispute resolution data and developing a
framework for ongoing publication of reportable situations data.
ASIC is
seeking stakeholder feedback on the proposals by May 14, 2025, as part of its
broader strategy to improve consumer outcomes in the financial sector.
The Federal
Court has appointed liquidators to wind up Falcon Capital Limited and its First
Guardian Master Fund, following an application by the Australian Securities and
Investments Commission (ASIC),
while the regulator simultaneously advances plans to increase transparency in
the financial sector.
Court Forces Liquidation
of Falcon Capital as Investors Remain Locked Out
Ross
Blakeley and Paul Harlond of FTI Consulting will serve as liquidators for
Falcon Capital, the First Guardian Master Fund, and related unregistered
subsidiary funds. The court also appointed Paul Allen of PKF Melbourne as
receiver to the property of David Anderson, a director of Falcon.
This action
escalates ASIC’s February 2025 intervention when the regulator obtained court
orders freezing the assets of Falcon, First Guardian, and Anderson amid
concerns about fund management and investor risks.
ASIC’s
investigation revealed approximately $274 million of First Guardian’s value
came from significantly overdue cash receivables, while over $23 million was
allegedly paid to marketing entities contrary to investor representations. The
regulator also uncovered potential conflicts of interest involving Anderson’s
personal financial interests in entities receiving fund investments.
Investors
have been unable to access their funds since May 2024, when Falcon suspended
most withdrawals from First Guardian. Many investors were reportedly directed
to the fund through lead generators who connected them with financial advisers
recommending they roll superannuation assets into retail choice funds or
establish self-managed superannuation funds specifically to invest in First
Guardian.
ASIC Proposes Publishing
Firm-Level Breach and Complaints Data
In a
separate development, ASIC has launched a consultation on plans to publish
dashboards containing firm-level data on reportable situations and internal
dispute resolution in the second half of 2025.
The
proposal, detailed in Consultation
Paper 383, aims to enhance transparency and accountability while
highlighting areas with concentrations of significant breaches and complaints.
ASIC believes this will enable financial firms to target improvements in
compliance, consumer outcomes, and overall performance.
“Publishing
Reportable Situations and Internal Dispute Resolution data will encourage firms
to lift their game,” said ASIC Commissioner Alan Kirkland. “It also
provides consumers and investors access to this data at firm level, further encouraging
confident and informed participation in the financial system.”
The
initiative aligns with ASIC’s Corporate Plan 2024-25, which committed to
publishing firm-level internal dispute resolution data and developing a
framework for ongoing publication of reportable situations data.
ASIC is
seeking stakeholder feedback on the proposals by May 14, 2025, as part of its
broader strategy to improve consumer outcomes in the financial sector.
This post is originally published on FINANCEMAGNATES.
