Court orders wind up of Falcon Capital, First Guardian
The Federal Court has appointed liquidators to wind up Falcon Capital and the First Guardian Master Fund, following an ASIC application.
Falcon Capital is set to be wound up after the Federal Court appointed Ross Blakeley and Paul Harlond of FTI Consulting as liquidators, ordering them to wind up the firm, the First Guardian Master Fund, and a number of related unregistered subsidiary funds.
In March, ASIC applied to the Federal Court for the appointment of liquidators to Falcon Capital, as well as the appointment of a receiver and manager to the personal property of one of Falcon’s directors, David Anderson.
In February, ASIC sought for the assets of Falcon, First Guardian, and Anderson to be frozen, with the court making orders to that effect on 24 February.
“ASIC is concerned about the management and operation of First Guardian and the associated risks to investors. Withdrawals from First Guardian have been suspended with limited exceptions since May 2024,” ASIC said in March.
Last week, the regulator said it took this action because it was “concerned about Falcon’s management and operation of First Guardian and the associated risks to investors”.
The Federal Court also ordered that Paul Allen of PKF Melbourne be appointed as receiver to the property of Anderson.
In May 2024, Falcon suspended the processing of applications and withdrawals from First Guardian subject to some limited exceptions. Since that time, the vast majority of investors have been unable to access their funds.
“ASIC’s investigation to date suggests that many investors were called by lead generators and referred to personal financial advice providers who advised them to roll their superannuation assets into a retail choice superannuation fund and then invest into First Guardian,” the regulator said.
“Some investors received advice to set up self-managed superannuation funds (SMSFs) to facilitate investments into First Guardian.”
The related unregistered subsidiary funds are:
- The First Guardian Global Income Fund
- The First Guardian Australian Development Fund
- The First Guardian Absolute Equities Fund
- The First Guardian Trulet Innovation Fund
- The First Guardian Global Equity Fund
AUTHOR
Keith Ford
Recommended for you
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
Private market secondaries manager Coller Capital has unveiled a new education platform to improve advisers’ and investors’ understanding of secondaries.
