The Australian Securities and Investments Commission (ASIC) has commenced civil penalty proceedings against former First Guardian executives David Anderson and Simon Selimaj, alleging widespread management and oversight failures that exposed retirement savings to risky, undocumented and conflicted investments. The allegations concern a fund that received more than AUD 600 million from over 6,000 Australians between August 2019 and April 2025, largely from their superannuation. Anderson was managing director and chief executive officer, while Selimaj was executive chairman and chief investment officer. The claim alleges that Falcon Capital Limited, First Guardian’s responsible entity, invested around AUD 270 million through unregistered underlying funds it controlled, with substantial amounts committed without adequate documentation, security or due diligence. Payments included at least AUD 57 million to entities controlled by Anderson or Selimaj. Agreements with Maleo Singapore allegedly created assets valued at AUD 188 million on First Guardian’s balance sheets despite having little or no value. Other allegations concern misleading product disclosures about investment processes, Anderson’s control over investment decisions without meaningful oversight or disclosure of conflicts, and Selimaj’s inadequate monitoring of Falcon Capital’s activities. ASIC is seeking court permission to bring civil penalty proceedings against Falcon Capital because it is in liquidation. The regulator is pursuing declarations, civil penalties and disqualification orders, but will not seek to enforce any penalty obtained against Falcon Capital so that available funds can be returned to investors. The proceedings form part of ASIC’s 2026 enforcement priorities addressing the First Guardian and Shield fund collapses and poor practices in private credit.
ASIC launches civil penalty proceedings against former First Guardian executives over alleged investment and governance failures
ASIC has brought civil penalty proceedings against former First Guardian executives David Anderson and Simon Selimaj over alleged investment and oversight failures. More than 6,000 Australians invested over AUD 600 million in the fund, largely from superannuation, with allegations including inadequate safeguards, conflicted investments and misleading disclosures. ASIC is also seeking court permission to proceed against Falcon Capital, the fund’s responsible entity in liquidation, and is pursuing civil penalties and disqualification orders.