Ariel Mack, a former teacher and single mother, has described her devastation after her superannuation savings plummeted from $173,000 to $5,000 following the 2025 collapse of the First Guardian investment fund. The incident has left thousands of investors facing financial ruin and questioning the integrity of Australia's compulsory retirement savings system.
Mack, 48, had worked for 30 years to build her nest egg and had planned to retire in 20 years. Burned out from teaching, she sought to improve her retirement savings and was advised in October 2023 to move her superannuation into the AusPrac investment fund, which was part of First Guardian. She was assured the fund would yield healthy returns within five to 10 years and paid thousands in fees for the advice.
"I couldn't go to work that day. What's the point of working and getting your super if it's now all gone? What am I working for?" Mack told nine.com.au, recounting her distress at the sudden loss.
The Australian Securities and Investments Commission (ASIC) has launched Federal Court action against Diversa Trustees Limited, the trustee for Ausprac. ASIC alleges Diversa breached its duties by failing to adequately warn investors about the fund's illiquidity risks, leaving them vulnerable when withdrawals were frozen and the fund subsequently entered liquidation.
ASIC is seeking compensation for affected investors, including the possibility of a remediation program. However, Diversa has denied wrongdoing, arguing in its court defence that losses were caused by alleged fraud and the actions of First Guardian's directors and other parties. Diversa stated it acted in members' best interests and is committed to rectifying the fraud and holding those responsible accountable. Managing Director Andrew Peterson indicated that Diversa has applied to the Federal Government for financial assistance for affected members.
Save Our Super advocate Melinda Kee noted that around 12,000 individuals lost approximately $1.2 billion in retirement savings. She criticized regulators, trustees, platforms, and advisers for systemic failures, stating that any money recovered by ASIC through legal action would go to government revenue, not directly to the investors who lost their savings.
"Regulators, trustees, platforms, and advisers all failed us at every step," Kee said. "ASIC is now taking legal action, but any money they recover will go into government revenue, not back to the people who lost everything. That is unfair, and we cannot accept it."
ASIC's investigations have also focused on First Guardian directors. The regulator alleges that director David Anderson, 46, siphoned millions of dollars from the fund into his personal bank account and transferred $274 million offshore after learning he was under investigation. These offshore funds have not been recovered. Before the fund's collapse, Anderson reportedly purchased a $9 million mansion in Melbourne's Hawthorn. Fellow director Simon Selimaj, 63, allegedly used fund money to purchase a Lamborghini Urus valued at $548,000.
Kee highlighted structural gaps in the system meant to protect compulsory superannuation, noting that many investors discovered losses or grounds for complaint after the licensee had ceased to exist, leaving them unable to file complaints with the Australian Financial Complaints Authority (AFCA) or apply to the Compensation Scheme of Last Resort (CSLR).