Sydney engineer Jason Berry has voiced his disbelief and frustration after losing $150,000 from his retirement savings due to the collapse of the First Guardian superannuation fund. Berry, 55, transferred approximately $450,000 from his industry super fund in 2023 after being advised by financial planner Rhys Reilly, who recommended First Guardian based on projected higher returns.
Reilly has since been banned by the Australian Securities and Investments Commission (ASIC) from providing financial services for 10 years. Berry noted that after six months, his balance had not significantly changed, prompting him to attempt to withdraw his funds. He managed to transfer $300,000 back to his industry fund but left $150,000 in First Guardian, a decision he now regrets. "I feel like a fool because I listened to a financial adviser that took $3,500 off me to leave money in there that I ultimately lost," Berry stated.
He estimates the total loss could approach $300,000 when accounting for compound growth, significantly impacting his retirement plans. "You don't sleep," Berry said. "Not once did you have it on your mind that in superannuation you could lose your money. That's just unthinkable."
Berry argues that because superannuation is compulsory in Australia, the government bears responsibility when the system fails to protect investors. "The government had all the information that we never had, and yet they're pointing the finger at everybody else, not themselves," he said. "They knew long before I did that First Guardian was on the nose. They had all the evidence, and they didn't stop it."
Berry is one of thousands affected by the $1.2 billion collapse of the First Guardian and Shield funds. According to advocacy group SOS Save Our Super, led by investor Melinda Kee, more than 7,000 investors are still awaiting accountability or compensation nearly two years after the funds collapsed. Kee emphasized that the regulatory framework should have been more robust, stating, "When the system contains loopholes large enough for thousands to lose their life savings, it is no longer just a failure of private enterprise but also of public protection."
ASIC has been taking enforcement actions, with 15 advisers linked to the collapsed funds banned from financial services in the 2025-26 financial year. ASIC chair Sarah Court indicated the regulator is pursuing cases involving alleged misconduct across various financial sectors to prevent further consumer harm.
Despite these actions, Berry expressed his difficulty in understanding how individuals could have protected themselves, stating, "There was nothing online. There was nothing from ASIC. There was nothing to tell me there was a problem."