The Australian Financial Complaints Authority (AFCA) published a short video and summary explaining a lead determination involving United Global Capital and Next Generation Advice, both in liquidation, in connection with consumer losses linked to the Shield and First Guardian Master Funds collapses. In the determination, an AFCA panel found Next Generation Advice gave inappropriate advice and United Global Capital failed to act with due care and skill, and it held both firms responsible for compensating the consumer for direct losses. The consumer received advice from Next Generation Advice in 2022 to establish a self-managed super fund (SMSF), roll over existing superannuation and invest in three funds including the Shield Master Fund. United Global Capital assumed responsibility for providing services to the SMSF in May 2023 and, in May 2024, advised the consumer to dispose of the Shield investment and another fund; the consumer said the firm failed to provide timely advice or proper instruction on how to sell. Assessing each firm’s conduct separately, the panel attributed a direct loss of approximately AUD 180,000 to Next Generation Advice’s unsuitable SMSF and investment strategy, and a further direct loss of approximately AUD 36,000 to United Global Capital’s failure to act on redemption instructions, and also required Next Generation Advice to contribute towards winding up the SMSF. AFCA positioned the decision as part of a series of lead determinations intended to help its teams resolve similar complaints relating to Shield and First Guardian more quickly and consistently.

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