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
Advisers at DOD Bookkeeping, which received an $11 million penalty last week, received as much as 40 per cent of their remuneration via a bonus when clients purchased a property via a SMSF, according to court documents.
Private wealth manager Escala Partners has launched an end-to-end investment platform to strengthen its alternatives capability as clients seek sophisticated vehicles.
Perpetual Wealth Management has hired two advisers from Ord Minnett as part of five hires, just weeks after the rival firm announced it had picked up six from Perpetual Private.
ASIC has cancelled the AFSL of a Perth financial services firm following payments to its clients by the Compensation Scheme of Last Resort after a failed managed investment scheme.
