Perth nurse Kelly Forrest, a mother of two, was forced to return to work nearly two years earlier than planned after losing $60,000 when the First Guardian superannuation fund collapsed in 2024. Forrest had invested the sum in May 2024, only ten days before the fund's public collapse, after seeing a Facebook advertisement. She stated that she realized something was wrong when her emails went unanswered.
"It appears I was pulled into this about ten days before it collapsed publicly, meaning it was well known by those who brought me in that the collapse was imminent," Forrest told the Daily Mail. She added that names of people she spoke with changed constantly, she was unable to access client portals, and phone calls were never returned.
Forrest had planned to remain at home with her one-year-old son and three-year-old daughter until her approved maternity leave concluded in June 2028. The financial loss meant she had to resume her nursing career in September, forfeiting planned time with her children. "I can rebuild my savings. I can work more and earn more money. But I can't rebuild their childhood," she said.
She emphasized that the collapse's impact on young families is not fully understood, noting that the lost money represented financial independence and the freedom to spend time with her children during their formative years. "The money represented financial independence and the freedom to step away from her career while her children were young," the report states.
Melinda Kee, who leads SOS Save Our Super, urged the Federal Treasury to allocate more funds to the Compensation Scheme of Last Resort (CSLR), stating that victims should not have to wait for funding architecture reforms to receive compensation. "Victims have waited long enough. We are promised a last resort. Priority must be on getting the victims paid, so we can move forward and heal from this ordeal," Kee said.
Financial Services Minister and Assistant Treasurer Daniel Mulino acknowledged the devastating impact of the First Guardian and Shield collapses on investors, many of whom reported being put into funds without their knowledge or being misled. Mulino advised affected individuals to apply to the Australian Financial Complaints Authority (AFCA) and noted that ASIC has undertaken regulatory actions and worked with platforms like Macquarie and Netwealth to help investors recover capital.
In response to such collapses, the government has announced reforms, including a ban on unlicensed telemarketers cold-calling Australians and soliciting them to switch super accounts. Advisers are now restricted to contacting existing clients and will be held more accountable for the conduct of third-party lead generators. "Advisers are only allowed to initiate contact with existing clients and will be held more accountable for the conduct of third-party lead generators they engage, in a bid to prevent another Shield or First Guardian-style collapse, according to the reforms," the report stated.