About 6,000 First Guardian investors, many of whom put retirement savings into the fund through their super, still do not know what they will get back. The latest liquidators' update shows $8.02 million recovered so far, or 1.56 per cent of what directors said the investments were worth. Fees of about $6.96 million have already been incurred. With court hearings due in November and December, the next few weeks matter.

What the liquidators reported

FTI Consulting's Ross Blakeley and Paul Harlon are the liquidators of Falcon Capital, the Responsible Entity behind First Guardian. They still cannot tell investors what, if anything, they will recover.

The headline figure is $8.02 million recovered. That is 1.56 per cent of the $512.8 million at which the directors had valued the fund's investments.

On the other side of the ledger, fees total about $6.96 million. This was made up of legal fees of $3.33 million and liquidators' remuneration of $3.23 million.

Put simply, the fees incurred so far equal roughly 87 per cent of the money recovered. That comparison does not mean the fees have been paid out of recoveries in that proportion, but it shows how thin the returns have been to date.

Where the money sits

The liquidators split the investments into three groups.

  • "Written off/settled": $117.6 million invested, with $3.49 million recovered, or about 3 per cent.
  • "Further recoveries expected": $50.75 million invested, with $4.53 million recovered, or 8.9 per cent.
  • "Uncertain": $344.5 million invested, with nothing recovered.

The uncertain group is the one to watch. It accounts for about two-thirds of the value the directors had put on the fund's investments, and much of the money appears to have gone offshore.

About 18 months after the collapse, that leaves most investors facing an open question rather than a number.

Why this is a super and retirement issue

First Guardian was not a fringe product for most of those caught up in it. More than $600 million was invested in First Guardian between August 2019 and April 2025, mostly from superannuation.

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

Save our Super's Melinda Kee, who lost $400,000, said: "It is utterly devastating that after 18 months, just $8 million has been recovered."

For people close to retirement, a large hole in a super balance cannot easily be refilled. The concessional contribution rules and limits that apply to everyone also apply to people trying to rebuild after a loss, so catching up is slow.

Some investors have already received money from elsewhere. Netwealth reimbursed about $100 million to about 1,000 First Guardian investors under a deal with ASIC.

The compensation scheme and the $150,000 cap

The Compensation Scheme of Last Resort, or CSLR, is the backstop many investors are looking at. The scheme's cap is $150,000.

That cap matters for people with larger balances. Anyone whose loss exceeds it would need to look to liquidator recoveries, other legal action or other avenues for the rest. Whether a particular person can claim, and how much, depends on the scheme's rules and the facts of their case.

Some investors are considering a class action.

Hypothetical example: Sam, a 62-year-old, had $200,000 of his super invested in First Guardian. If the CSLR paid the maximum of $150,000, he would still be $50,000 short. If, purely for illustration, he received a share of recoveries at the overall rate achieved so far, 1.56 per cent of $200,000 is $3,120. That is not how distributions will necessarily work, because costs, priorities and the final pool are unknown, but it shows why the size of the uncertain bucket matters so much.

Now flip the example. If Sam's loss had been $120,000 rather than $200,000, a capped CSLR payment could in principle cover it in full, while recoveries from the Liquidation would matter far less to him. The same collapse can produce very different outcomes depending on how much each person had in the fund, which is why investors with large balances are watching the liquidators and the courts most closely.

Tax is a further question. Whether and when a fund can recognise a loss, and how any compensation or recovery is treated, depends on the type of fund and the circumstances.

The legal fights running alongside

The liquidation is only one part of the story. ASIC has launched several actions linked to First Guardian.

ASIC is suing trustees Diversa and Equity Trustees, and both say they will defend the claims.

ASIC is also suing Falcon Capital's former directors, David Anderson and Simon Selimaj. Its originating process is dated 30 October 2026. ASIC is seeking declarations, civil penalties and disqualification orders against the two men. These are allegations, and no court has made findings.

Separately, ASIC Chair Sarah Court told Senate Estimates the regulator is "considering all options" to stop InterPrac, the licensee behind many of the affected clients, from being sold by its owner, Sequoia.

What to watch

A firmer picture of recoveries is expected after court hearings in November and December 2026.

  • November and December 2026: court hearings expected to clarify what can be recovered, particularly from the uncertain bucket.
  • The ASIC case against David Anderson and Simon Selimaj, filed with an originating process dated 30 October 2026.
  • ASIC's cases against Diversa and Equity Trustees, which both trustees are defending.
  • Any CSLR announcements on claims and payments, with the $150,000 cap in place.
  • Possible class action activity by investors.