The Australian Securities and Investments Commission (ASIC) has been successful in its efforts to wind up a managed investment scheme that appears to have been involved in advising people to roll over their super into retail funds or SMSFs so they could to invest in it.
ASIC stated the Federal Court had appointed liquidators to wind up Falcon Capital Limited, the First Guardian Master Fund and related unregistered subsidiary funds, with Ross Blakeley and Paul Harlond of FTI Consulting being appointed to that task.
The related unregistered subsidiary funds are the First Guardian Global Income Fund, First Guardian Australian Development Fund, First Guardian Absolute Equities Fund, First Guardian Trulet Innovation Fund and First Guardian Global Equity Fund.
The court took the action following an application from ASIC on 17 March after the corporate watchdog raised concerns about Falcon’s management, the operation of First Guardian and the associated risks to investors.
Orders were also given by the court that Paul Allen of PKF Melbourne be appointed as receiver to the property of Falcon director David Anderson, which follows on from orders granted on 24 February freezing the assets of Falcon, First Guardian and Anderson to protect investor funds while ASIC continued its investigation.
The regulator stated its work so far suggested 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 super fund or an SMSF, for which some investors received establishment advice, and then to invest into First Guardian.
