By Fedix team • • 4 min read
Client super and high-risk investments: what ASIC's First Guardian proceedings remind practices to document
On 30 October 2026 ASIC published media release 26-263MR, ASIC sues Falcon Capital directors David Anderson and Simon Selimaj alleging First Guardian failures. This article summarises what the release says and offers a general reminder for practices. It is general information only, not legal or tax advice, and it draws no conclusion about any person or any client.
What the release says
ASIC states that it has commenced civil penalty proceedings in the Federal Court against two former officeholders of the responsible entity for the First Guardian Master Fund. The release says superannuation money in the fund was "exposed to high-risk, undocumented, and conflicted investments", and that this is what ASIC alleges.
On the numbers, ASIC alleges that between August 2019 and April 2025, more than 6,000 Australians invested more than $600 million in First Guardian, largely from their superannuation.
ASIC also alleges the fund's responsible entity made investments with "inadequate documentation, insufficient security, inadequate due diligence, and unmanaged conflicts of interest", including payments of at least $57 million to entities controlled by Mr Anderson or Mr Selimaj.
ASIC is seeking declarations, civil penalties and disqualification orders. These are allegations in proceedings. The release does not report findings by the Court, and nothing here should be read as a finding.
Who this touches
The release is about a fund and its officeholders, not about accountants. But accountants and tax agents often hold the clearest picture of a client's overall position, including where a self-managed or retail super balance sits and what has changed. When a client's super is placed in an investment that later attracts regulatory attention, the practice may be asked what it knew and what it recorded.
ASIC also says the investigations connected to First Guardian and Shield are continuing.
A general reminder: what a practice can document
The following are record-keeping ideas, not legal requirements. The release does not say that any practice did or did not do any of them.
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Book a demo (opens Microsoft Bookings in a new tab)Prefer to write? Contact us about a demo instead of booking a slot- Scope of engagement. Record in plain words whether your engagement covers investment or superannuation product advice, or only tax and compliance work. Many disputes start with a mismatch in expectations.
- What the client told you. Keep a dated file note when a client mentions a super rollover, a new fund or a new investment, and what you said in response (for example, that you are not advising on the product and suggested they speak to a licensed adviser).
- Source documents you saw. Note which documents you actually reviewed, such as a product disclosure statement, a fund statement or a rollover confirmation, and which you did not.
- Referrals. If you referred the client to a licensed financial adviser or to the fund, record the date and who you referred them to.
- Red flags you noticed. If something looked unusual, such as unclear fees, unclear underlying assets or a related party on both sides of a transaction, a short factual note is easier to rely on later than memory.
The allegations in the release centre on undocumented investments, inadequate due diligence and unmanaged conflicts. Those are themes that apply to any record, including a practice's own file.
A short, plain example
A sole trader asks their accountant to prepare a tax return and mentions in passing that their super was moved to a new fund last year. The accountant's engagement covers tax only. A good file might hold a one-paragraph note: the date, the client's comment, that the accountant did not review the fund's documents, and that the client was encouraged to speak to a licensed adviser if they had questions about the investment. No client names or figures are needed to see how simple that is.
Next steps
- Read the ASIC release in full, so you rely on the regulator's words and not a summary.
- Review your engagement letter template for how it describes investment and super matters.
- Check that your file-note habits capture client comments about super.
- For questions about your own obligations, speak with your professional body or a legal adviser.
For more practice resources, visit home.fedix.ai.
Source: ASIC media release 26-263MR, 30 October 2026, https://www.asic.gov.au/about-asic/news-centre/find-a-media-release/2026-releases/26-263mr-asic-sues-falcon-capital-directors-david-anderson-and-simon-selimaj-alleging-first-guardian-failures