ASIC Takes Falcon Capital’s Former Bosses to Court Over the First Guardian Collapse

The corporate regulator has taken the former leaders of the collapsed First Guardian Master Fund to court. ASIC said on Friday 30 October that it had commenced civil penalty proceedings in the Federal Court against David Anderson, former managing director and CEO of the fund’s responsible entity, Falcon Capital, and Simon Selimaj, its former executive chairman and chief investment officer, alleging “serious and widespread failures in the management and oversight of First Guardian.”

ASIC is also seeking the court’s leave to bring civil penalty proceedings against Falcon Capital, which is in liquidation. The allegations have not been tested in court.

What ASIC alleges

ASIC alleges that between August 2019 and April 2025, more than 6,000 Australians invested more than $600 million in First Guardian, largely from their superannuation. It alleges Falcon Capital invested around $270 million through unregistered underlying funds it controlled, with investments made with inadequate documentation, insufficient security, inadequate due diligence and unmanaged conflicts of interest.

According to ASIC, the alleged conduct included investments in hospitality businesses and technology ventures in which Mr Anderson had a personal interest, and payments of at least $57 million to entities controlled by Mr Anderson or Mr Selimaj. ASIC also alleges that Falcon Capital misled investors in its product disclosure statements by representing that First Guardian had robust investment processes, and that Mr Selimaj failed to act in members’ best interests by inadequately monitoring Falcon Capital’s activities.

“These were Australians’ retirement savings, yet ASIC alleges millions of dollars were handed over before contracts were even in place, including for investments linked to those running the fund,” ASIC chair Sarah Court said.

ASIC is seeking declarations, civil penalties and disqualification orders. To ensure any available funds go back to investors, it said it would not seek to enforce any penalty obtained against Falcon Capital.

The response

Dan Mackay of Mackay Chapman, the lawyer acting for Mr Anderson, told the ABC: “We have been served with ASIC’s proceedings only earlier today. The statement of claim runs to over 150 pages in length. It contains at present unproven allegations of fact and law.” He said the matters “remain, as they have since ASIC commenced its investigation, to be proven by ASIC,” and that there was no further comment at this time.

The wider fallout

ASIC said the case forms part of its 2026 enforcement priorities on the collapse of First Guardian and the Shield Master Fund, and on poor practices in private credit. More than 1,000 investors have had over $100 million returned after Netwealth entered into a court enforceable undertaking with ASIC, and the regulator has separate proceedings against Equity Trustees Superannuation and Diversa Trustees seeking compensation for First Guardian investors.

The collapses are also showing up in complaint numbers. AFCA received 8,755 superannuation complaints in 2025–26, up 42%, and said large investment collapses, mostly concerning the Shield and First Guardian funds, were the main driver of investment and advice complaints, according to IFPA’s summary of AFCA’s annual review.

For trustees, platform operators and advisers, ASIC’s statement makes clear the regulator sees the case as a test of governance, conflicts and oversight in private credit, not just of the individuals involved.

Sources: ASIC media release 26-263MR, 30 October 2026; ABC News, 30 October 2026; IFPA weekly bulletin, 26–30 October 2026.

This article is general information only and is not legal advice. Readers should seek advice specific to their circumstances.