Successful complaints by other investors

Other people who were invested in Shield and First Guardian have already made complaints and the Australian Financial Complaints Authority has awarded them money. Before making your complaint, you might find it helpful to read about other investors and the complaints they made.

5 Point Financial Planning (Financial Services Group Australia)

Ellen (not her real name) is a 48-year-old midwife. In 2023, she was contacted by a marketing firm about switching her super. The marketing firm passed her information onto a financial adviser who worked for 5 Point Financial Planning. The adviser recommended she move her super from Aware to New Quantum Super and invest in Shield and First Guardian Master Funds. The adviser didn’t talk to Ellen directly. Based on the advice, Ellen switched her super over. When both Shield and First Guardian collapsed, she lost a large amount of her nearly $250,000 of super.

Ellen made a complaint to AFCA about Financial Services Group Australia, which is the financial firm who authorised 5 Point Financial Planning to give advice. AFCA looked at the advice she was given and the work that the adviser did to understand what her needs were. AFCA also looked at what Ellen was told about the investments. 

After looking at all the information Ellen provided, AFCA agreed that the advice Ellen was given was inappropriate, did not consider her needs and contained information that was misleading. AFCA ordered Financial Services Group Australia to pay Ellen the amount of money that she lost on the investment (about $196,000 less anything she receives from the liquidator) plus interest.

Read more about Ellen.

Macquarie and MWL Financial Services Pty Ltd

Carl and Greta (not their real names) were advised to start a self-managed superannuation fund (SMSF) after being cold-called and referred to a financial adviser. The adviser recommended they move most of their money into the Shield Master Fund through the Macquarie platform. When Carl and Greta found out that Shield had collapsed, they made a complaint about the financial advice firm, MWL Financial Services Pty Ltd. AFCA found that the advice that they got wasn’t in their best interests and awarded them compensation. 

Because Macquarie had already paid Carl and Greta back about $220,000 (the amount they originally invested in Shield), AFCA deducted that amount from the total money they were awarded. Carl and Greta were awarded: 

• about $96,000 for other investment losses and money they could have made if they hadn’t switched their super, 
• up to $5,000 to pay for shutting down the SMSF, and
• interest.

Read more about Carl and Greta.

AusPrac Super and Interprac Financial Planning Pty Ltd

Annette (not her real name) is a 37-year-old old gardener. In 2023, Annette was contacted by a financial adviser after she responded to a social media ad about super. The financial adviser told her to move her super to Australian Practical Super (AusPrac) and invest it in the First Guardian Master Fund. After First Guardian collapsed, Annette made a complaint to AFCA about the financial advice business, Interprac Financial Planning Pty Ltd. 

Annette said the advice she was given wasn’t in her best interests because it was misleading about the expected returns for First Guardian, more expensive, too high risk for her needs and the advice was conflicted (AusPrac and Interprac are related companies).

AFCA agreed with Annette that the advice was not in her best interests and awarded her:

• about $73,000 for the money she lost on First Guardian;
• about $18,000 for money she would have earned if she hadn’t switched her super; and
• interest.

Annette does not have to wait for the liquidation of First Guardian to finish to see if there is any money left over. Interprac has to pay her the full amount of her losses now. However, AFCA also said that if there is any money left over, Annette will have to give that money from the liquidator to Interprac. This is because you can’t get paid back the same money twice. 

Read more about Annette.