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.

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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.

Source: Finance Magnates