The corporate regulator has turned its attention to the two men who ran First Guardian's responsible entity. ASIC is suing Falcon Capital's former directors, David Anderson and Simon Selimaj, alleging that about $270 million went through unregistered funds Falcon controlled. For thousands of Australians who lost retirement savings, many of them through their super, the case is a new front in the long fight over where the money went and who should answer for it.

Who is being sued and what ASIC wants

ASIC's case, announced in media release 26-263MR, targets David Anderson, Falcon Capital's former managing director and chief executive, and Simon Selimaj, its former executive chair and chief Investment officer. The originating process filed by ASIC is dated 30 October 2026.

ASIC is seeking declarations, civil penalties and disqualification orders against both men.

ASIC is also seeking leave to begin penalty proceedings against Falcon Capital itself, which is in liquidation. The regulator says it will not enforce any penalty against the company, so that remaining funds can go to investors rather than being absorbed by a fine.

It is important to be clear about status. These are allegations made by ASIC in court documents. Neither man has had findings made against him, and the case will be decided by the court.

The alleged money trail

More than $600 million was invested in First Guardian between August 2019 and April 2025, mostly from superannuation.

Of that, ASIC alleges about $270 million went through unregistered underlying funds that Falcon controlled. It also alleges that at least $27.9 million went to property developments without adequate due diligence.

On those figures, the $270 million is about 45 per cent of the $600 million invested, although the total invested was more than $600 million, so the true share would be somewhat lower.

The other allegations include inadequate documentation and security for investments, conflicts of interest that were not managed, and product disclosure statements that were misleading. ASIC also alleges Anderson controlled investment decisions without meaningful oversight.

ASIC Chair Sarah Court said: "Hundreds of millions of dollars were allegedly channelled into high-risk and conflicted investments."

Why this matters for super members

Most of the money invested in First Guardian came from super. When a fund like this fails, the loss lands in a tax-advantaged account that is meant to fund decades of retirement, and it cannot simply be topped up again.

Contribution caps limit how quickly anyone can rebuild a super balance with concessionally taxed money. For older members, the time to recover through investment returns is also short.

There is also an opportunity cost. Money that has been frozen in a failed fund for 18 months or more has not been earning returns inside the low-tax super environment, and that lost compounding may never be fully made up, even for those who are compensated.

Across Shield and First Guardian, about 11,800 investors lost more than $1 billion.

The Compensation Scheme of Last Resort is one possible avenue. The CSLR cap is $150,000, which leaves a gap for anyone who lost more than that, even if their claim is accepted.

Hypothetical example: Priya, 58, moved $250,000 of her super into First Guardian. If she were eligible for and received the maximum CSLR payment of $150,000, she would still be $100,000 short. Any further recovery would have to come from the liquidation, from a successful legal action or from other sources. Separately, the tax treatment of any loss or compensation within a super fund depends on the fund and the facts.

That gap is why outcomes in court cases such as ASIC's action against the former directors matter to individual members, even though penalties paid to the Commonwealth do not go directly to investors.

How this case fits with the others

This is not ASIC's only First Guardian action. Earlier proceedings involved a larger group of defendants, including advisers, and ASIC is also suing trustees Diversa and Equity Trustees. Both trustees say they will defend the claims.

Liquidators FTI Consulting have so far recovered $8.02 million, or 1.56 per cent, while fees have reached about $6.96 million. Netwealth reimbursed about $100 million to about 1,000 First Guardian investors under a deal with ASIC.

Separately, ASIC Chair Sarah Court told Senate Estimates that ASIC is "considering all options" to stop the sale of InterPrac, the licensee whose clients put money into Shield and First Guardian. InterPrac, owned by Sequoia, is trying to sell its Business to Bellbird Australia. More than 6,000 InterPrac clients put $680 million into the two funds.

What happens next

Civil penalty cases of this kind can take a long time. The court will first need to deal with procedural steps, including ASIC's application for leave to proceed against Falcon Capital while it is in liquidation.

If the court finds contraventions, it can make declarations, impose penalties and disqualify people from managing corporations. Penalties are paid to the Commonwealth. That is why ASIC's choice not to enforce a penalty against Falcon itself matters: it preserves whatever is left in the company for investors.

For investors, the practical point is that recoveries and compensation are likely to come through several channels at different times, rather than in one payment.

Key dates to watch

  • November and December 2026: court hearings in the First Guardian matters, which are expected to give a firmer picture of recoveries.
  • First directions in ASIC's case against David Anderson and Simon Selimaj, following the originating process dated 30 October 2026.
  • Developments in ASIC's push over the proposed InterPrac sale to Bellbird Australia.
  • Progress in ASIC's cases against Diversa and Equity Trustees, which both trustees are defending.
  • CSLR claims activity, with the $150,000 cap in place.