Update to Investors in the First Guardian Master Funds

ASIC has made an application to the Federal Court of Australia for the appointment of a liquidator of Falcon Capital Limited (Falcon), the responsible entity for the First Guardian Master Fund (First Guardian), and for orders directing the liquidators to wind up First Guardian.  ASIC’s application is returnable to the Court on 9 April 2025.

According to ASIC’s website 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 has alleged that:

1. approximately $274 million of First Guardian’s value arises from cash receivables in respect of which payments are many months late;
2. in excess of $23 million of First Guardian’s assets appear to have been paid to entities purportedly providing marketing services which appears contrary to representations made to investors;
3. First Guardian has invested in entities which Mr Anderson had an association with or financial interest in and Falcon appears to have failed to recognise and manage consequent conflicts of interest;
4. investors may have been exposed to classes of assets that differ from what was disclosed to them at the time of making their investment; and
5. investors may have been misled about the security of their investment and likely returns.

This step follows ASIC also investigating Ferras Merhi in connection with its investigations concerning certain managed investment schemes including First Guardian. Mr Merhi controls Venture Egg Financial Services Pty Ltd (formerly Ferras Merhi Pty Ltd) & United Financial Advice Pty Ltd, trading as Venture Egg and Financial Services Group Australia Pty Ltd (FSGA).

If you were advised to invest in the First Guardian by your financial advisor, we ask that you contact Financial Dispute Legal to discuss your circumstances and consider any rights to recover compensation on 1800 891 924 or enquiry@fdlegal.com.au

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