The collapse of the Shield Master Fund and First Guardian Fund have been a sobering reminder for many about how careful people need to be when considering where they should invest their superannuation and what can go wrong.
If you have suffered losses from the collapse of the First Guardian or Shield Master Fund, you may be able to make a claim against your financial adviser or other financial services provider (such as a superannuation fund) to recover your losses.
Not sure if you’re entitled to make a claim? Call us for free advice.
ASIC investigating the collapse and alleged misconduct
The First Guardian Master Fund and Shield Master Fund were investment products (superannuation/managed investment schemes) that promised higher returns, often with claims of low risk or bonds/fixed-interest type safety.
Sadly, over 12,000 people invested their funds into these schemes. In total, First Guardian and Shield Master Fund held combined assets of approximately $1.2 billion.
Many of the people who invested in these funds did so after having been cold-called, after having received financial advice, and sometimes via their superannuation platforms' investment options. Many people made the decision to invest their funds without fully understanding the risks that they were exposed to.
It appears that many of the investments held by these funds were not the safe investments which consumers were told. Many of the investments appear to have been high-risk investments that have been overvalued and have underperformed.
ASIC is currently investigating the collapses and alleges that there has been significant misconduct involved in the collapses and has sought freezing orders to try and preserve the assets of the fund in the hope that something might be able to be salvaged for the investors.
How do I know if I’m affected?
Many people who have suffered losses have already received letters from liquidators or their superannuation funds and advisers advising them of the losses.
If you aren’t sure, check which super fund(s) you are with. The people who were affected by this collapse were members of the following super funds:
- Macquarie Wrap
- NQ Super
- Freedom of Choice Super
- AMG Super
- Acclaim Wealth
- Super Simplifier
- Your Choice Super
- AusPrac Super
- Praemium Super
- Netwealth Superannuation
If you are a member of any of these superannuation funds and have suffered losses in First Guardian or Shield Master Fund it is possible that you may have a claim against your super fund depending on your circumstances.
If I have suffered losses, what can I do?
If you have suffered losses from the collapse of the First Guardian or Shield Master Fund, you may be able to make a claim against your financial adviser or other financial services provider (such as a superannuation fund) to recover your losses. It is very important to get some advice about your rights without delay.
Complaints through the AFCA
You may be able to make a claim against your financial advisor or super fund through the Australian Financial Complaints Authority (AFCA) or the Courts.
Compensation Scheme of Last Resort (CSLR)
Importantly, for some claimants, if their financial advisor has gone into liquidation or can’t pay the compensation that you are awarded, you may be entitled to compensation through the Compensation Scheme of Last Resort (CSLR) up to the maximum value of $150,000 per claim.
However, you can only obtain compensation through the CSLR if you have succeeded in a complaint through the AFCA and have a determination in your favour. So, it is critical that a complaint is made with AFCA while the advisor or financial services provider remains a member of the AFCA.
Compensation claims against financial advisers
Importantly, if you intend to pursue a claim against your financial adviser, you should lodge a complaint with the AFCA as soon as possible.
In many instances, the advice provided by certain financial advisers in relation to Shield Master Fund and First Guardian was deficient and hasn’t had regard to the appropriate risk profile of the investor and wasn’t suitable in the circumstances.
If the advice you received wasn’t appropriate, you may be able to claim your losses by lodging a complaint with the AFCA.
Compensation claims against your superannuation fund
ASIC has alleged that some superannuation funds may have failed to conduct appropriate due diligence in relation to the investments that they offered through Shield Master Fund or First Guardian Fund.
If a superannuation fund has breached its obligations to its members, a member is entitled to request compensation from the superannuation fund for the losses that they have suffered, and a member may be able to take a claim of this kind to the AFCA.
Can I have more than one claim?
There are some circumstances in which people may have more than one claim that they can make in relation to losses from the First Guardian or Shield Master Fund collapses.
For example, in some circumstances, a couple who both received advice may each be entitled to claim separately. Further, there are some people who may be entitled to recover compensation in relation to bad financial advice through the CSLR, but also make a claim for the remainder of any losses they have suffered against their superannuation fund.
Get free legal advice
If you have suffered losses in the First Guardian or Shield Master Fund collapses, please contact us without delay for a free appraisal of your situation. If we are engaged to act for people in relation to these disputes, we will run any cases on a 'no win, no fee' basis. So, it costs you nothing to find out where you stand.
Contacting Berrill & Watson
📞 Melbourne: 03 9448 8048
📞 Brisbane: 07 3013 4300
📞 Anywhere else in Australia: 03 9448 8048
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