First Guardian Liquidation Recovers Small Fraction of Assets
Liquidators have recovered only $8.02 million from the $512.8 million originally held in the First Guardian fund.
Updated on Oct. 29, 2026 in Financial Crime
Live Poll
Do you trust financial regulators to effectively protect individual retirement savings from investment fraud?
Liquidators have recovered $8.02 million from the collapse of the $512.8 million First Guardian investment fund. After accounting for $6.96 million in liquidation fees, the net recovery for investors is approximately $1 million.
Why it matters
The low recovery rate highlights the financial devastation caused by the offshoring of funds into speculative start-ups and overseas property. Total losses across the First Guardian and Shield schemes now exceed $1 billion, leaving many investors with minimal recourse.
Liquidators have successfully recovered only 1.56 per cent of the original $512.8 million investment pool. ASIC is currently suing Diversa and Equity Trustees while evaluating options to disrupt the sale of InterPrac Financial Planning.
The players
ASIC
The Australian Securities and Investments Commission is the nation's corporate regulator responsible for overseeing financial markets and enforcing corporate law.
Netwealth
Netwealth is an Australian financial services company that provides investment platforms and superannuation products to investors and advisers.
Diversa
Diversa is an Australian financial services entity currently facing legal action from the regulator regarding its involvement in the investment schemes.
Equity Trustees
Equity Trustees is an Australian financial institution currently being sued by ASIC for its role in the marketing and operation of the schemes.
Melinda Kee
Melinda Kee is an individual investor who moved her superannuation savings into the First Guardian fund in November 2023.
The details
Funds were channelled into speculative technology start-ups and overseas property, leading to high liquidation costs that consumed most of the recovered assets. While Netwealth reimbursed $100 million to approximately 1,000 investors in December 2025, many other victims remain heavily under-compensated.
Timeline
November 2023: Melinda Kee switched her super into First Guardian.
December 2025: Netwealth reimbursed $100 million to affected investors.
November 2026: Scheduled court hearings involving major players.
December 2026: Scheduled court hearings involving major players.
Legal Context
The situation surrounding these schemes highlights the limitations of the Compensation Scheme of Last Resort, which provides a maximum payout of only $150,000 per claim. This recovery effort sits against a backdrop of over $1 billion in total investor losses across the First Guardian and Shield schemes.
Affected investors are limited by the $150,000 cap per claim offered through the Compensation Scheme of Last Resort. Residents should monitor the upcoming November and December court hearings for updates on potential further distribution of remaining assets.
The takeaway
Victims of large-scale financial schemes should consult official liquidator filings to understand their specific standing regarding recovery distributions. While reimbursement programmes like those from Netwealth provide some relief, investors should remain cautious of speculative investments that lack transparency.
What happens next
Liquidators plan to provide a firmer outlook for the remaining recovery process after court hearings conclude in November and December 2026.
Further reading
For more information on the ongoing regulatory response, see the Financial Crime section.
Live Poll
Do you trust financial regulators to effectively protect individual retirement savings from investment fraud?
