Perth nurse Deborah Heron, who lost over $130,000 when the First Guardian superannuation fund collapsed, has voiced frustration with the federal government's latest reforms aimed at safeguarding retirement savings. Despite the government's efforts, Heron feels the measures are insufficient for those who lost substantial amounts.
"I'm angry, angry, angry," Heron told The Senior newspaper. "Some people have got nothing back. They've got absolutely nothing. I'm really angry for everyone else."
The collapses of First Guardian and Shield in 2025 are linked to over $1.1 billion in investor losses. The First Guardian Master Fund alone accounted for approximately $46 million invested by about 6,000 Australians.
Financial Services Minister Daniel Mulino recently unveiled a package of reforms intended to strengthen protections for retirement savings. These measures include a ban on unsolicited cold-calling regarding superannuation products, increased scope for super funds to offer advice and contact members directly, the creation of a new class of adviser within super funds, and enhanced oversight of managed investment schemes.
Mulino stated that the reforms are designed to disrupt damaging business models operating within the financial system. A key component will grant the Australian Securities and Investments Commission (ASIC) stronger powers to intervene when trustees breach their obligations and to mandate compensation for members' capital losses.
However, the reforms limit compensation claims to actual investment losses, excluding potential future earnings. Victim Melinda Kee, who met with Mulino prior to the announcement, welcomed the reforms but argued that investors should still be able to claim lost earnings.
"Reform is absolutely necessary, and everyone should be grateful for the action taken here, but investors affected by the current collapses cannot simply become the catalysts for a safer system for everyone who comes after us," Kee said. "There must also be a pathway forward for the people whose losses exposed these failures in the first place."
Questions have been raised about the effectiveness and potential conflicts of interest within the proposed changes. Some analyses suggest that the government's introduction of a new class of adviser, who would be employed by super funds and permitted to recommend products from their employing organization, could create an inherent bias. While these advisers would be prohibited from receiving commissions, concerns remain that they could still be incentivized to keep money within the fund.
Despite these criticisms, the package includes measures that have been met with approval. ASIC will gain enhanced powers to order trustees to compensate members for breaches of duty, and the Australian Prudential Regulation Authority (APRA) will impose bank-style financial requirements on funds offering riskier investments. These protections are seen as overdue, but there is a call for those responsible for the collapses to bear the costs, rather than prudent fund members.
The collapses of the Shield and First Guardian schemes highlighted significant weaknesses in the superannuation system. While the new regulations aim to address these issues, victims like Heron emphasize that the compensation process for thousands still awaiting restitution remains a critical concern.