ASIC seeks court order to liquidate Falcon and First Guardian assets

Australian Securities and Investments Commission (ASIC) has taken decisive legal action against Falcon Capital Limited and the First Guardian Master Fund amid growing concerns over investor protection and asset mismanagement.
ASIC applied to the Federal Court for the appointment of liquidators to both Falcon and First Guardian, as well as for orders directing these liquidators to wind up the First Guardian fund. Additionally, ASIC is seeking the appointment of a receiver and manager for the personal property of Falcon director David Anderson.
Key concerns and allegations
This action follows previous court orders issued on February 24, 2025, which froze the assets of Falcon, First Guardian, and David Anderson.
ASIC alleges several serious issues: approximately $274 million of First Guardian’s value arises from cash receivables for which payments are significantly delayed; over $23 million in assets appear to have been disbursed to entities providing marketing services—contrary to what was represented to investors.
Moreover, First Guardian has reportedly invested in entities linked to Anderson, resulting in conflicts of interest that were not properly managed. These issues have raised alarms that investors may have been misled about both the security and the expected returns on their investments. Notably, withdrawals from First Guardian have been suspended—with limited exceptions—since May 2024.
Investigation and future implications
ASIC’s investigation into the management of First Guardian suggests that many investors were steered into these investments through advice from lead generators and personal financial advisors. Some consumers were even advised to roll their superannuation assets into retail choice superannuation funds or to set up self-managed superannuation funds (SMSFs) to facilitate investment in First Guardian.
With the hearing scheduled for April 9, 2025, the case is set to intensify scrutiny over the practices of both Falcon and First Guardian.
Looking ahead, market watchers will monitor whether ASIC’s intervention will restore investor confidence and prompt tighter regulatory oversight. The outcome of these proceedings could have significant implications for the management of similar investment vehicles in Australia.
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