Latest news with #FirstGuardian
Daily Mail
15 hours ago
- Business
- Daily Mail
Banned financial adviser who told Aussies nearing retirement to invest life savings in First Guardian super likened himself to a personal trainer dealing with 'attitude'
A banned financial adviser linked with collapsed super fund First Guardian had likened himself to a personal trainer dealing with 'attitude' when it came to guiding clients. Joel Hewish, 43, last year had his financial licence cancelled for a decade after the Australian Securities and Investments Commission found his Melbourne-based private wealth management company, United Global Capital, had contacted prospective clients and advised them to put their self-managed super fund into highly speculative investments linked to him. 'ASIC banned Mr Hewish having found that he demonstrated a fundamental lack of competence, and a cavalier attitude to his management of UGC and the importance of complying with financial services laws,' the corporate regulator said. Canberra couple Simon and Annette Luck had relied on UGC's advice to invest in the First Guardian Master Fund, which is now in liquidation leaving 6,000 retirement savers in limbo. The $505million fund had invested almost half its assets overseas. Mr Hewish, who is still a property developer in Melbourne, had previously likened himself to a personal trainer when asked by My Business Podcast host Rob Verhoeve to describe the perfect client. 'The perfect client for us doesn't really come down to how much money they've got, it comes down to how engaged they are in the process,' he said in this March 2023 interview. 'It comes down to their willingness to engage with their adviser, to go through the process of developing a clear picture of what it is that they want out of the whole process and that they're willing to learn, listen and have the right attitude to taking those adjustments that might need to be made and working with them.' He argued clients had a 'responsibility to take what we show them' and adopt that advice. Asked if that made him the financial equivalent of a personal trainer, he said: 'It very much is a personal trainer in many respects.' ASIC last year revoked Mr Hewish's Australian financial services licence and banned him as a financial services representative until June 2034. His UGC company was also placed into liquidation. Retired Customers officer Simon Luck, 61, in 2012 had engaged UGC to invest his self-managed super fund. Him and his wife Annette Luck, 56, have now lost $340,000 that had been invested with First Guardian Master Fund, owned by Falcon Capital. 'We're not financial wizards my wife and I - we pay good money to trust these so-called licensed professionals to invest on our behalf,' he told Daily Mail Australia. 'I guess gutted is probably the right word.' FTI Consulting estimates 6,000 investors, who had their super with First Guardian, stand to conservatively lose $446million with $242million worth of retirement savings invested offshore. First Guardian Master Fund director David Anderson had bought a $9million mansion at Hawthorn, on Melbourne's Yarra River, in December 2020. The Canberra-based Lucks are now contemplating selling their house to live in a caravan, and putting off trips to The Netherlands and the UK to visit relatives, losing hope they would ever be able to use their super to pay off their mortgage. 'After having paid thousands upon thousands of dollars for these so-called professionals to manage our fund to be left in this predicament is unbearable,' Mr Luck said in a letter to his federal Labor member Andrew Leigh. 'I did this wisely through licensed financial advisers, for which I paid thousands of dollars a year to manage. 'UGC had invested my wife and I's entire superannuation with a regulated and licensed fund First Guardian, which ASIC have now also placed a freeze on.' He also expressed his dismay in a letter to Prime Minister Anthony Albanese. 'I have no doubts that both Mr. David Anderson (Falcon Capital investment) and Mr. Joel James Hewish (director United Global Capital) continue to live a lavish and luxurious lifestyle and would be able to enjoy the fruits of their ill gotten gains and have benefited greatly from tax minimisation strategies available to them, however, my wife and I are not so lucky and will never get to enjoy a stress free retirement thanks to them and the lack of financial protection provided,' he said. Annette said the regulators had failed to stop the likes of Mr Anderson. 'We are both feeling entirely let down by the lack of "protection" our so called financial regulated system provides and have lost a lot of trust and faith in so called "Australians" and see Mr. David Anderson as no better than an overseas scam agent,' she told Daily Mail Australia. Hewish's licence was cancelled after ASIC found that UGC had lured people into investing in UGC-related products by cold calling prospective clients and offering them a 'free superannuation health check'. He appealed his ban to the Administrative Appeals Tribunal, after ASIC said he 'created a culture of non-compliance and incompetence at UGC, and cannot be trusted to comply with financial services laws'. Hewish features as a director on the website of Melbourne-based property developer Hewson. It is linked to Serpells Road Pty Ltd, the developer of a luxury apartment complex at Templestowe in Melbourne's east. Mr Hewish's X account describes him as a 'professional stock and real estate investor and speculator. Former Founder, CEO and Chief Investment Officer of a multi-disciplined wealth management business'. It lists his based as New York even though his ASIC file shows him as a director of companies in Melbourne and the Gold Coast. Daily Mail Australia has contacted Mr Hewish for comment.
ABC News
5 days ago
- Business
- ABC News
First Guardian investors may lose their super. Should you be worried about yours?
Investors in the collapsed First Guardian fund may struggle to recover their superannuation savings. In the wake of this, many Australians may be concerned about their own retirement savings and whether they could be at risk. Here's what happened at First Guardian and how super savings are generally protected in Australia. Up to $446 million of people's superannuation may have been lost by a managed investment scheme, First Guardian Master Trust. According to the Australian Securities and Investments Commission (ASIC), investments were made into First Guardian by about 6,000 investors through superannuation platforms: ASIC understands that many of those investors were called by lead generators who used high-pressure sales tactics to allegedly lure them to transfer their super into a choice fund, and then invest in First Guardian. Falcon Capital is the responsible entity for First Guardian and is now in liquidation. Liquidators from FTI Consulting say the case will take at least a year to resolve and that they may never recover a dollar of their superannuation savings. However, the liquidator has flagged that they would give people who invested "priority" treatment in trying to recover their funds if they paid them a fee. FTI Consulting suggested that Falcon funnelled investors' money into "property developments and equity positions in related companies that may have shared a common director with the company". Super Consumers CEO Xavier O'Halloran says it is important for Australians to understand that what has collapsed is not a super fund but rather a managed investment scheme. This means it's not regulated by the Australian Prudential Regulation Authority (APRA), which oversees the stability and transparency of super funds. "Think of an investment option like a brand of cereal in a supermarket or in this case the super fund's shelf." There is a compensation scheme that provides a small amount of protection when people suffer financial loss, like those from First Guardian. However, it's capped at $150,000 to consumers who have an unpaid determination from AFCA. "Typically a retiree can expect to retire with closer to $250,000, so that could create a massive hole in people's retirement plans," Mr O'Halloran said. The Compensation Scheme of Last Resort (CSLR) is an independent body, established under legislation by the government to support the victims of financial misconduct. When investing your super, Mr O'Halloran said there were far more protections on investments labelled as "MySuper". "These investments have to be designed to meet the needs of most members of a super fund and are performance tested annually by the regulator. "If they fail the performance test once, they have to let you know, which is a big red flag and you should consider whether to stay. "If they fail a second time they aren't allowed to take on new members until they can solve the problem, usually by merging with a better fund." If you have a MySuper account, you'll likely either have a: The YourSuper comparison tool helps you compare super funds based on their performance. But the First Guardian case highlights there are also big gaps in protection, Mr O'Halloran said. "Some other investment options are independently tested by the regulator, but First Guardian and any other products not designed by the super fund offering them typically aren't tested," Mr O'Halloran said. "Investment options designed for retirees are also not tested. "This is a massive gap the federal government needs to plug if they are serious about protecting the retirement savings of Australians." ASIC deputy chair Sarah Court says there are a number of red flags to look out for when it comes to sales calls about switching super. "The initial salespeople can be very persuasive. Often the underlying schemes are complex or not made clear to the consumer, and it may be very difficult for even experienced investors to spot problems," Ms Court said. "The caller will seemingly have your best interests at heart and may also involve referrals to financial advisers during the call to create a sense of comfort and legitimacy. "Consumers should always ask questions about salespeople's connections to funds, particularly in circumstances where a particular fund appears in the pitch, as there may be a commission arrangement." Here are the common warning signs: Speaking with ABC Radio Melbourne, stock market specialist Remo Greco from Sanlam Private Wealth says if you're being hassled to invest, "get good at saying no". "If it seems too good to be true, it probably is." Over the last year or so, there have been two other big collapses of these investment options. They are: The combined total losses, including First Guardian, could total $1.2 billion from over 12,000 Australians. You can check your super balance, combine accounts, and search for lost super by logging into your myGov account and then clicking on Australian Taxation Office (ATO) under linked services. To manage super in your ATO online account, you can follow these steps:
News.com.au
6 days ago
- Business
- News.com.au
‘Significant shortfalls': First Guardian Master Fund investors warned they may never see their money again
Thousands of Australians who have invested their superannuation into First Guardian have been told they may not be able to recover all of their funds, and it could take more than a year for them to get their money back. About 6000 Australians have invested $590m into the superannuation fund, which was founded in 2019 as a management investment scheme. Investors were advised to roll their money into a retail choice super fund, then invest their funds into First Guardian, which was available to investors on the superannuation platforms Equity Trustees, Netwealth and Diversa. Customers said they were unaware their funds were being transferred to First Guardian Master Fund despite the details being written in the company's legal documents. The fund collapsed earlier this year, leaving thousands of customers in the lurch and unsure if they will ever see their money again. FTI Consulting liquidators Paul Harlond and Ross Blakely, who released their preliminary report into the fund, said they 'intend to undertake further investigations', including the determination 'whether any breaches of the Corporations Act or any other laws have occurred by any party … or any other circumstances exist, which may give rise to a potential claim by investors'. In their report, the liquidators said they were 'seeking compensation on behalf of members of the fund for losses suffered', which could be as high as $446m. However, they also hold fears investors may never see their funds again. Their assessment found the 'overall recoverable value of the investments is likely to be considerably less than their combined book value' and a 'substantial shortfall of recoverable assets to outstanding investor funds will therefore likely arise in the liquidation'. In the report, the liquidators said 'a large proportion of investors in the (First Guardian Master Fund) invested through investment platforms', adding the recovered funds may not be as high as hoped. ' … the liquidators consider the value of the assets may have been overstated in the accounts,' the report read. 'It is very likely that some of the funds' assets/investments are not recoverable or will not recover their full ascribed value. Indeed, significant shortfalls to book values are expected.' The ABC reports the liquidators noted much of the money invested had gone to 'illiquid investments such as property developments and equity positions in related companies that may have shared a common director with the company'. The liquidators said it would take 'certainly beyond 12 months' to complete their investigation and wind up the business due to the 'complexity and number of outstanding matters' in the liquidation. 'The liquidators consider that the liquidation and the winding up of the funds will continue for and take some time to complete,' the report read. Corporate watchdog Australian Securities and Investments Commission (ASIC) confirmed it was launching an investigation. Falcon Capital Ltd is responsible for the failed superannuation fund, with ASIC investigating its former managing director David Anderson, who allegedly funnelled funds from superannuation members into his failed property developments and craft breweries. It's alleged Mr Anderson also poured the investor's savings into celebrity chef Scott Pickett's restaurant empire, of which he was an investor, ABC reported last week. Mr Anderson's assets have been frozen and his passport has been seized as Federal Court-appointed liquidators and investigators sort through financial records. ABC reported Mr Anderson allegedly moved $274m into offshore companies after he was alerted about the corporate watchdog's probe. The watchdog alleges $5.6m was deposited into Mr Anderson's ANZ account between June 2022 and September last year 'without any legitimate basis for payments in that amount being apparent to ASIC or disclosed to investors'. ASIC also alleges Mr Anderson used $16,000 to make mortgage payments on his $9m home overlooking the Yarra River. Mr Anderson's legal representative, Dan Mackay of Mackay Chapman, told the ABC last week 'there have been no findings of fact or law by any court or tribunal, nor by ASIC'. 'Mr Anderson will fully exercise his rights in response to allegations which may be made against him at the appropriate time in the appropriate forum,' he said.
Yahoo
6 days ago
- Business
- Yahoo
Worrying update after super fund collapse
Thousands of Australians who have invested their superannuation into First Guardian have been told they may not be able to recover all of their funds, and it could take more than a year for them to get their money back. About 6000 Australians have invested $590m into the superannuation fund, which was founded in 2019 as a management investment scheme. Investors were advised to roll their money into a retail choice super fund, then invest their funds into First Guardian, which was available to investors on the superannuation platforms Equity Trustees, Netwealth and Diversa. Customers said they were unaware their funds were being transferred to First Guardian Master Fund despite the details being written in the company's legal documents. The fund collapsed earlier this year, leaving thousands of customers in the lurch and unsure if they will ever see their money again. FTI Consulting liquidators Paul Harlond and Ross Blakely, who released their preliminary report into the fund, said they 'intend to undertake further investigations', including the determination 'whether any breaches of the Corporations Act or any other laws have occurred by any party … or any other circumstances exist, which may give rise to a potential claim by investors'. In their report, the liquidators said they were 'seeking compensation on behalf of members of the fund for losses suffered', which could be as high as $446m. However, they also hold fears investors may never see their funds again. Their assessment found the 'overall recoverable value of the investments is likely to be considerably less than their combined book value' and a 'substantial shortfall of recoverable assets to outstanding investor funds will therefore likely arise in the liquidation'. In the report, the liquidators said 'a large proportion of investors in the (First Guardian Master Fund) invested through investment platforms', adding the recovered funds may not be as high as hoped. ' … the liquidators consider the value of the assets may have been overstated in the accounts,' the report read. 'It is very likely that some of the funds' assets/investments are not recoverable or will not recover their full ascribed value. Indeed, significant shortfalls to book values are expected.' The ABC reports the liquidators noted much of the money invested had gone to 'illiquid investments such as property developments and equity positions in related companies that may have shared a common director with the company'. The liquidators said it would take 'certainly beyond 12 months' to complete their investigation and wind up the business due to the 'complexity and number of outstanding matters' in the liquidation. 'The liquidators consider that the liquidation and the winding up of the funds will continue for and take some time to complete,' the report read. Corporate watchdog Australian Securities and Investments Commission (ASIC) confirmed it was launching an investigation. Falcon Capital Ltd is responsible for the failed superannuation fund, with ASIC investigating its former managing director David Anderson, who allegedly funnelled funds from superannuation members into his failed property developments and craft breweries. It's alleged Mr Anderson also poured the investor's savings into celebrity chef Scott Pickett's restaurant empire, of which he was an investor, ABC reported last week. Mr Anderson's assets have been frozen and his passport has been seized as Federal Court-appointed liquidators and investigators sort through financial records. ABC reported Mr Anderson allegedly moved $274m into offshore companies after he was alerted about the corporate watchdog's probe. The watchdog alleges $5.6m was deposited into Mr Anderson's ANZ account between June 2022 and September last year 'without any legitimate basis for payments in that amount being apparent to ASIC or disclosed to investors'. ASIC also alleges Mr Anderson used $16,000 to make mortgage payments on his $9m home overlooking the Yarra River. Mr Anderson's legal representative, Dan Mackay of Mackay Chapman, told the ABC last week 'there have been no findings of fact or law by any court or tribunal, nor by ASIC'. 'Mr Anderson will fully exercise his rights in response to allegations which may be made against him at the appropriate time in the appropriate forum,' he said. Sign in to access your portfolio
Perth Now
6 days ago
- Business
- Perth Now
Worrying update after super fund collapse
Thousands of Australians who have invested their superannuation into First Guardian have been told they may not be able to recover all of their funds, and it could take more than a year for them to get their money back. About 6000 Australians have invested $590m into the superannuation fund, which was founded in 2019 as a management investment scheme. Investors were advised to roll their money into a retail choice super fund, then invest their funds into First Guardian, which was available to investors on the superannuation platforms Equity Trustees, Netwealth and Diversa. Thousands are at risk of losing their nest egg. NewsWire / David Swift Credit: News Corp Australia Customers said they were unaware their funds were being transferred to First Guardian Master Fund despite the details being written in the company's legal documents. The fund collapsed earlier this year, leaving thousands of customers in the lurch and unsure if they will ever see their money again. FTI Consulting liquidators Paul Harlond and Ross Blakely, who released their preliminary report into the fund, said they 'intend to undertake further investigations', including the determination 'whether any breaches of the Corporations Act or any other laws have occurred by any party … or any other circumstances exist, which may give rise to a potential claim by investors'. The superannuation fund collapsed earlier this year. NewsWire / Christian Gilles Credit: News Corp Australia In their report, the liquidators said they were 'seeking compensation on behalf of members of the fund for losses suffered', which could be as high as $446m. However, they also hold fears investors may never see their funds again. Their assessment found the 'overall recoverable value of the investments is likely to be considerably less than their combined book value' and a 'substantial shortfall of recoverable assets to outstanding investor funds will therefore likely arise in the liquidation'. In the report, the liquidators said 'a large proportion of investors in the (First Guardian Master Fund) invested through investment platforms', adding the recovered funds may not be as high as hoped. ' … the liquidators consider the value of the assets may have been overstated in the accounts,' the report read. 'It is very likely that some of the funds' assets/investments are not recoverable or will not recover their full ascribed value. Indeed, significant shortfalls to book values are expected.' About 6000 Australians invested their money into the fund. NewsWire / Nicholas Eagar Credit: NCA NewsWire The ABC reports the liquidators noted much of the money invested had gone to 'illiquid investments such as property developments and equity positions in related companies that may have shared a common director with the company'. The liquidators said it would take 'certainly beyond 12 months' to complete their investigation and wind up the business due to the 'complexity and number of outstanding matters' in the liquidation. 'The liquidators consider that the liquidation and the winding up of the funds will continue for and take some time to complete,' the report read. The liquidators warned they may not be able to recover all of the money. NewsWire / Luis Enrique Ascui Credit: News Corp Australia Corporate watchdog Australian Securities and Investments Commission (ASIC) confirmed it was launching an investigation. Falcon Capital Ltd is responsible for the failed superannuation fund, with ASIC investigating its former managing director David Anderson, who allegedly funnelled funds from superannuation members into his failed property developments and craft breweries. It's alleged Mr Anderson also poured the investor's savings into celebrity chef Scott Pickett's restaurant empire, of which he was an investor, ABC reported last week. Mr Anderson's assets have been frozen and his passport has been seized as Federal Court-appointed liquidators and investigators sort through financial records. ASIC is investigating. NewsWire / Nicholas Eagar Credit: NewsWire ABC reported Mr Anderson allegedly moved $274m into offshore companies after he was alerted about the corporate watchdog's probe. The watchdog alleges $5.6m was deposited into Mr Anderson's ANZ account between June 2022 and September last year 'without any legitimate basis for payments in that amount being apparent to ASIC or disclosed to investors'. ASIC also alleges Mr Anderson used $16,000 to make mortgage payments on his $9m home overlooking the Yarra River. Mr Anderson's legal representative, Dan Mackay of Mackay Chapman, told the ABC last week 'there have been no findings of fact or law by any court or tribunal, nor by ASIC'. 'Mr Anderson will fully exercise his rights in response to allegations which may be made against him at the appropriate time in the appropriate forum,' he said.
