Australian Securities & Investments Commission seeks liquidators for Falcon Capital and court-ordered wind up of First Guardian Master Fund

The Australian Securities & Investments Commission has applied to the Federal Court for the appointment of liquidators to Falcon Capital Limited, the responsible entity of the First Guardian Master Fund, and for orders requiring the liquidators to wind up the fund. It is also seeking a receiver and manager over the personal property of Falcon director David Anderson while its investigation continues. The application follows asset-freezing orders obtained in February 2025 covering Falcon, the fund and Mr Anderson, which have since been extended. ASIC is concerned about the fund’s management and operation, noting withdrawals have been suspended since 27 May 2024 (with limited exceptions), and alleges that around AUD 274 million of value arises from cash receivables with payments many months late and more than AUD 23 million of assets appear to have been paid to entities purportedly providing marketing services contrary to representations made to investors. It also alleges investments were made in entities associated with Mr Anderson without adequate conflict management, investors may have been exposed to asset classes different from those disclosed, and investors may have been misled about investment security and likely returns; ASIC’s investigation to date suggests many investors were sourced via lead generators and advised to roll superannuation (including via SMSFs) into the fund. The matter is listed for hearing on 9 April 2025.