The watchdog says the trustee did not act in the best interests of members and failed to ensure efficient and fair provision of financial services.

ASIC alleges Equity Trustees approved First Guardian despite evidence it was illiquid and without obtaining critical information like audited financial accounts.

NQ Super & Pension, run by Equity Trustees, saw more than $65 million channeled into First Guardian during that period.

ASIC alleges Equity Trustees failed to act in the best interests of about 2,700 members in its handling of the First Guardian Master Fund.

Liquidators were appointed to shut down the businesses, seize assets, and pursue debt recovery, with assets being sold to recover funds.

The liquidation process aims to recover assets and repay creditors following the collapse.

ASIC notes progress in consumer restitution, reporting more than $420 million repaid to investors through ongoing efforts.

The regulator claims Equity Trustees failed to secure key information before approving the investment, undermining members' interests.

ASIC deputy chair criticized the decision to approve First Guardian and seeks compensation for members, plus declarations and civil penalties.

The regulator argues a prudent trustee would not have approved First Guardian under the information available, and seeks remedies including compensation, declarations, and civil penalties.

ASIC has filed a civil case in the Federal Court against Equity Trustees Superannuation Limited over alleged breaches of fiduciary duties related to the First Guardian Master Fund investment by members of the NQ Super & Pension, an AMG Super fund operated by Equity Trustees.

More than 2,700 members invested over $65 million into First Guardian between mid-2023 and early 2024, a fund that collapsed in 2024 along with Shield Master Fund, impacting roughly 11,000 people and about $1.1 billion in retirement savings.