When you put money into your super, you expect it to be there when you retire. But for 12,000 Australians who invested in two managed investment schemes, that expectation turned into a nightmare. Between 2024 and 2025, the First Guardian Master Fund and Shield Master Fund collapsed, wiping out around $1 billion in retirement savings and triggering a government crackdown on regulatory loopholes.
Total losses from collapsed funds: $1 billion ·
Number of affected members: 12,000 ·
Collapsed funds: First Guardian Master Fund and Shield Master Fund ·
Year of collapse: 2024 and 2025
Quick snapshot
- First Guardian and Shield Master Funds collapsed in 2024/2025 (ASIC – Australia’s corporate regulator)
- 12,000 members lost approximately $1 billion (ABC News – Australian public broadcaster)
- ASIC and APRA are investigating (ASIC – Australia’s corporate regulator) (ASIC – Australia’s corporate regulator)
- Final recovery amounts for members (National Seniors Australia – consumer advocacy group)
- Legal outcomes for fund operators (ASIC – Australia’s corporate regulator) (National Seniors Australia – consumer advocacy group)
- Exact timeline for new regulations (ABC News – Australian public broadcaster) (National Seniors Australia – consumer advocacy group)
- May 2024: Falcon Capital suspends withdrawals (ASIC – Australia’s corporate regulator)
- February 2025: Federal Court freezes First Guardian assets (ASIC – Australia’s corporate regulator)
- February 2026: Government announces crackdown on managed investment schemes (ABC News – Australian public broadcaster)
- Compensation of ~$101 million to be paid automatically (Netwealth – superannuation platform)
- ASIC investigations continuing (ASIC – Australia’s corporate regulator) (Netwealth – superannuation platform)
- New regulations expected to close loopholes (The Guardian Australia – leading news outlet)
Seven key data points frame the scale of these collapses.
| Metric | Value |
|---|---|
| Total losses | $1 billion (approx.) |
| Affected members | 12,000 |
| Collapsed funds | First Guardian Master Fund, Shield Master Fund |
| Year of first collapse | 2024 |
| Year of second collapse | 2025 |
| Government response date | February 2026 |
| ASIC enforcement action | Ongoing |
Which superannuation fund collapsed?
What is the First Guardian Master Fund?
- The First Guardian Master Fund was a managed investment scheme offered through Falcon Capital Limited. Around 6,000 investors put money, including retirement savings, into it (ASIC – Australia’s corporate regulator). Falcon Capital suspended processing of applications and withdrawals in May 2024 (ASIC – Australia’s corporate regulator).
- ASIC alleges that about $300 million was invested into First Guardian between July 2020 and July 2024 through superannuation funds for which Diversa was trustee (ASIC – Australia’s corporate regulator).
- The Federal Court made interim orders preserving the assets of Falcon, First Guardian and Mr Anderson on 27 February 2025 (ASIC – Australia’s corporate regulator).
What is the Shield Master Fund?
- The Shield Master Fund collapsed in 2025, compounding losses. ABC News reported that ASIC blocked investment in Shield in February 2024 and froze the assets of First Guardian in February 2025 (ABC News – Australian public broadcaster).
- Together, the two schemes cost about 12,000 Australians more than $1 billion in retirement savings (ABC News – Australian public broadcaster).
How much money was lost?
- Approximately $1 billion was lost across both funds (The Guardian Australia – leading news outlet).
- In a court-enforceable undertaking, ASIC secured compensation for members of the Netwealth Superannuation Master Fund. Netwealth reported the total compensation pool is approximately $101 million, with payments effective 28 January 2026 (Netwealth – superannuation platform).
What happens if my super fund collapses?
Will I get my money back?
- There is no government guarantee for superannuation funds, unlike bank deposits covered by the Financial Claims Scheme (ABC News – Australian public broadcaster).
- Liquidators are appointed to recover assets. ASIC reported that Ross Blakeley and Paul Harlond of FTI Consulting were appointed as liquidators of Falcon Capital (ASIC – Australia’s corporate regulator).
- Recovery rates are often partial. Liquidators report that only a fraction of members’ money may be recovered (National Seniors Australia – consumer advocacy group). However, for First Guardian members invested through Netwealth, compensation of 100% of amounts invested (less withdrawals) has been secured (ASIC – Australia’s corporate regulator).
How do I reclaim my super?
- First, check if your fund is affected via ASIC or APRA.
- If your money was in First Guardian, register with the liquidator (FTI Consulting) and consider contacting the Australian Financial Complaints Authority (AFCA) (ASIC – Australia’s corporate regulator).
- For Netwealth Superannuation Master Fund members, compensation is automatic — no action needed (Netwealth – superannuation platform).
What role does APRA play?
- APRA regulates prudential aspects of superannuation funds, but managed investment schemes fall under ASIC’s oversight. The collapse exposed a regulatory gap between super funds and managed investment schemes (The Guardian Australia – leading news outlet).
Members who acted quickly and registered with the liquidator have the best chance of recovery. For Netwealth members, ASIC’s enforcement action delivered full compensation — but other investors face uncertain partial recovery.
Why are super funds going down?
What market factors affect super returns?
- General market volatility, interest rate rises and inflation affect superannuation returns across the board. But these collapses are not about market cycles — they stem from alleged fraud and poor management (Netwealth – superannuation platform).
Are managed investment schemes higher risk?
- Yes. Managed investment schemes like First Guardian and Shield lack the same regulation as standard APRA-regulated super funds. They are not covered by the government’s guarantee for bank deposits (The Guardian Australia – leading news outlet).
- Netwealth stated the losses were primarily caused by the fraudulent conduct of Falcon Capital Limited and related entities (Netwealth – superannuation platform).
How do interest rates and inflation impact super?
- While rising interest rates and inflation can lower the value of bond and property holdings in a super portfolio, the First Guardian and Shield cases were failures of oversight, not market conditions (ABC News – Australian public broadcaster).
The implication: These collapses were preventable. They expose a structural gap where managed investment schemes could operate with less scrutiny than regular super funds, leaving members at risk.
How safe is superannuation in Australia?
Is there a government guarantee for super?
- No, there is no government guarantee for superannuation, unlike bank deposits under the Financial Claims Scheme (ABC News – Australian public broadcaster).
What regulations protect super members?
- APRA regulates prudential aspects of super funds; ASIC regulates market conduct and managed investments. The government announced a crackdown on managed investment schemes in February 2026, aiming to close loopholes (ABC News – Australian public broadcaster).
- Yahoo Finance reported on 27 January 2026 that the Treasurer flagged superannuation changes after the $1 billion loss (Yahoo Finance Australia – financial news).
How does APRA supervise funds?
- APRA sets capital and governance standards for licensed super funds. But schemes like First Guardian and Shield were not APRA-regulated — they were managed investment schemes under ASIC’s watch. The government’s proposed reforms would bring them under stricter oversight (The Guardian Australia – leading news outlet).
Most APRA-regulated super funds are safe. But the First Guardian and Shield cases show that money flowing into unlisted managed investment schemes via super platforms can be exposed to higher risk. The government is now acting to close that gap.
Will millions of Australians have no say in who inherits their superannuation?
What are the current default death benefit rules?
- Without a binding nomination, super death benefits typically go to the estate or dependents according to the fund’s default rules. This may not reflect the member’s wishes (ABC News – Australian public broadcaster).
What changes are being proposed?
- After the fund collapses, the government flagged reforms to require members to opt in to default beneficiaries, giving them more control (Yahoo Finance Australia – financial news).
How does this relate to fund collapses?
- The collapses highlighted that many members had no clear beneficiary nomination. In the chaos of fund failure, default rules kicked in, potentially ignoring the member’s preferences (The Guardian Australia – leading news outlet).
The pattern: The losses exposed more than a regulatory gap — they revealed that even when members think their super is sorted, default rules can override their intentions after they’re gone.
Where will your super go once you’re gone?
How to nominate a beneficiary?
- You can make a binding death benefit nomination with your super fund. This ensures your super goes to the person or estate you choose (ABC News – Australian public broadcaster).
What happens if you don’t nominate?
- Without a nomination, the fund’s trustee decides, usually paying to dependents or the estate. This may not align with your wishes (The Guardian Australia – leading news outlet).
Can a collapsed fund affect death benefits?
- Yes. If your fund collapses, death benefits may be delayed or reduced while liquidators recover assets. A binding nomination can still protect your wishes, but the payout itself depends on recovery (National Seniors Australia – consumer advocacy group).
Timeline of the Super Fund Collapses
- May 2024 – Falcon Capital suspends processing of applications and withdrawals (ASIC – Australia’s corporate regulator)
- 2024 – First Guardian Master Fund collapses, locking $1 billion of 12,000 members’ savings (ABC News – Australian public broadcaster)
- 2025 – Shield Master Fund collapses, compounding losses (ABC News – Australian public broadcaster)
- 27 February 2025 – Federal Court makes interim orders preserving assets of Falcon, First Guardian and related parties (ASIC – Australia’s corporate regulator)
- July 2025 – The Guardian reports total losses exceed $1 billion (The Guardian Australia – leading news outlet)
- 27 January 2026 – Yahoo Finance reports government flags superannuation change after $1 billion loss (Yahoo Finance Australia – financial news)
- 28 January 2026 – Netwealth compensation payments effective, $101 million pool (Netwealth – superannuation platform)
- 5 February 2026 – ASIC takes further steps to support impacted Australians (ASIC – Australia’s corporate regulator)
- 9 February 2026 – ABC News reports government plans managed investment scheme crackdown (ABC News – Australian public broadcaster)
- 20 February 2026 – National Seniors article reveals liquidators say only partial recovery possible (National Seniors Australia – consumer advocacy group)
The timeline shows a rapid sequence of events, from withdrawal suspension to regulatory action, reinforcing the urgency for structural reforms.
What We Know and What We Don’t
Confirmed facts
- First Guardian Master Fund and Shield Master Fund collapsed in 2024/2025 (ASIC – Australia’s corporate regulator)
- 12,000 members lost approximately $1 billion (ABC News – Australian public broadcaster)
- ASIC and APRA are investigating (ASIC – Australia’s corporate regulator)
- Government announced regulatory crackdown in February 2026 (ABC News – Australian public broadcaster)
- Compensation of ~$101 million agreed for Netwealth members (Netwealth – superannuation platform)
What’s unclear
- Final recovery amounts for members outside Netwealth
- Legal outcomes for fund operators
- Exact timeline for new regulations
- Whether more funds are at risk
While the confirmed facts are well-documented, the unclear items underscore the ongoing uncertainty facing thousands of investors.
“ASIC is conducting multiple investigations into conduct connected to the First Guardian Master Fund.”
ASIC – Australia’s corporate regulator
“Netwealth… reached agreement with ASIC to pay compensation to members of the Netwealth Superannuation Master Fund who experienced a net capital loss as a result of the collapse.”
“Liquidators report that only a fraction of members’ money may be recovered.”
National Seniors Australia – consumer advocacy group
For the 12,000 Australians caught in these collapses, the choice is clear: engage with the liquidator, check your beneficiary nomination, and push for regulatory reforms that close the gaps exposed by First Guardian and Shield. Otherwise, the next collapse could hit even harder.
The effects of the super fund collapse of 2025 mirror what happened during the Shield and First Guardian Master Fund collapses, with similar losses and regulatory responses.
Frequently asked questions
Are superannuation funds insured by the government?
No, there is no government guarantee for superannuation in Australia. Unlike bank deposits covered by the Financial Claims Scheme, super funds are not insured by the government. However, APRA-regulated super funds are subject to strict prudential standards (ABC News – Australian public broadcaster).
How do I find out if my super fund has collapsed?
Check ASIC’s website for alerts on managed investment schemes, or contact your super fund directly. If your fund used First Guardian or Shield, ASIC has published guidance (ASIC – Australia’s corporate regulator).
What is the difference between a superannuation fund and a managed investment scheme?
A superannuation fund is a tax-effective vehicle for retirement savings, regulated by APRA. A managed investment scheme is an investment structure regulated by ASIC, often riskier and without the same protections (The Guardian Australia – leading news outlet).
Can I claim compensation for lost super through ASIC?
ASIC does not directly compensate individuals, but it can secure court-enforceable undertakings from parties. In the First Guardian case, ASIC obtained a $101 million compensation pool for Netwealth members (Netwealth – superannuation platform). Members should lodge claims with the liquidator and contact AFCA.
What are the warning signs of a failing super fund?
Red flags include: suspension of withdrawals, lack of diversification, high fees, and investments in unlisted or illiquid assets. First Guardian suspended withdrawals in May 2024 before collapsing (ASIC – Australia’s corporate regulator).
Should I move my super to a safer fund after the collapses?
If your super is in an APRA-regulated fund, it is generally safe. Avoid moving money into unlisted managed investment schemes without careful research. Consider APRA-regulated industry funds or retail funds with strong oversight (ABC News – Australian public broadcaster).
Related reading
- RBA Rate Decision: Cash Rate at 4.35% and Next Meeting Date – Understand how interest rate settings affect your super returns.
- Interest Rate Cuts Banks – How They Squeeze Profits – The broader economic picture behind super fund performance.
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Ben Hughes covers culture, lifestyle and society across Australia for Australia Current.