The Australian Financial Complaints Authority (AFCA) released a video featuring Shail Singh, Lead Ombudsman Investments and Advice, explaining how AFCA, the Australian Securities and Investments Commission (ASIC) and the Compensation Scheme of Last Resort (CSLR) operate for consumers affected by the collapse of the Shield and First Guardian Master Funds. The video positions an AFCA complaint as the usual starting point for impacted consumers seeking a potential compensation outcome. AFCA resolves complaints between consumers and financial firms by assessing each person’s circumstances and whether the firm acted fairly and complied with its obligations, with complaints available where the firm is an AFCA member and is alleged to have contributed to the loss. If AFCA issues a determination in a consumer’s favour and the firm is solvent, the firm must pay compensation within the timeframe set out in the determination, usually 30 days; if the firm is insolvent, or has not paid and AFCA has issued an ‘appropriate steps notice’, the consumer may be eligible to claim under the CSLR. The CSLR is separate from AFCA and can pay up to AUD 150,000 where there is an AFCA determination in the consumer’s favour and the insolvent firm cannot pay, while ASIC’s role is to investigate misconduct and take regulatory action rather than resolve individual complaints or award compensation; ASIC is investigating responsible entities and advisers involved in the funds and has funded Super Consumers Australia’s Take Your Super Back website to help impacted consumers understand their options, including how to lodge an AFCA complaint.
Australian Financial Complaints Authority 2026-02-20
Australian Financial Complaints Authority publishes video outlining AFCA ASIC and CSLR roles for Shield and First Guardian fund collapse consumers
The Australian Financial Complaints Authority (AFCA) released a video explaining the roles of AFCA, the Australian Securities and Investments Commission (ASIC), and the Compensation Scheme of Last Resort (CSLR) for consumers affected by the Shield and First Guardian Master Funds collapse. AFCA handles complaints, assessing if firms acted fairly and complied with obligations, with compensation possible if the firm is solvent. If insolvent, consumers may claim up to AUD 150,000 under the CSLR, while ASIC investigates misconduct and supports consumer guidance initiatives.