One of the most shocking things about the $1.2 billion collapse of Shield and First Guardian is that many super account owners seem blissfully unaware that they have been caught up in this collapse.
In many cases, their entire superannuation account has been wiped out by this collapse and some hard deadlines are now approaching that could be the difference between rescuing at least some of their super account or being permanently wiped out.
Indeed, the issue is so urgent that Super Consumers Australia have produced this “Take Your Super Back” website to alert the 11,000 people hit by the collapses.
Check if you Have Been Hit
Apart from outlining the steps needed to complain and potentially get paid back some of their lost super, one of the best things the website features is the very wide range of product names used by the collapsed and high-risk super providers.
There is also access to support services and detailed instructions about how to lodge a complaint with the Australian Financial Complaints Authority (AFCA).
Some complainants have already received some compensation through AFCA including missing earnings so it is really vital to get involved and make sure you are not affected by checking the take your super back website.
ASIC is also sending letters out to consumers that have been impacted but noted, of course, that "a compensation outcome is not guaranteed."
First Guardian and Shield Master went under in May 2024 owing about $1.2 billion, but only about 1,860 of the more than 12,000 investors have lodged complaints with the Australian Financial Complaints Authority, sparking concerns many people may not even realise their money is missing.
Liquidators say just $1.6 million has so far been recovered from the $1.2 billion collapse.
Most Investors Yet to Complain
AFCA deadlines are quite strict, and missing the cut-off could mean losing the right to seek compensation through the Compensation Scheme of Last Resort, a government initiative that provides up to $150,000 for consumers with unpaid financial misconduct claims.
Even the 1,860 complaints is probably an inflated number because many complainants have lodged multiple complaints against different entities, with only around 1000 individuals understood to be represented in the total.
Other than complaints to AFCA, some individuals have also had success in contacting platforms such as Netwealth which set aside $100 million to cover around 1000 people who invested in First Guardian through that platform.
Compensation Trickle Started
For some affected Australians, that action has already led to compensation, with more than 1,000 people who invested in First Guardian via fintech platform Netwealth winning a share of that $100 million following the fund's collapse.
Under a court-enforceable undertaking, Netwealth has agreed to repay affected members 100% of what they invested in First Guardian, minus any withdrawals already made, with payments due by January 30.
Macquarie Group also made a similar agreement, with $321 million to be paid to about 3,000 people who invested in Shield through its platform.
However, with strict complaint deadlines fast approaching and thousands of super members seemingly unaware they may have been impacted, the need to check the take your super back website if you are in any doubt has become very urgent.
