Praemium says its exposure to the First Guardian master fund has largely been inherited from the acquisition of OneVue from Xplan owner Iress, acknowledging a $286 million reduction in funds under administration (FUA).
In a quarterly business update to the ASX, the firm said this FUA loss was included in a $772 million positive net market movement during the September quarter.
Praemium confirmed its exposure to First Guardian included $176 million in YourChoice Super and $107 million in Australian Practical Super which were both offered on the OneVue platform, which it acquired in February 2024 at the same time preliminary investigations into First Guardian had commenced by ASIC.
Iress and Praemium were unable to respond by time of publication about whether they were aware ASIC was investigating the fund at the time of the transaction.
Praemium’s pre-existing exposure was $3 million and all funds used Diversa Trustees as the trustee.
“Praemium is focused on supporting members who have been impacted and working cooperatively with industry bodies and regulators, including ASIC, whilst the legal, regulatory and recovery processes continue,” the platform provider said in its business update.
The investigation into Shield is more progressed than First Guardian and Diversa Trustees has remained coy over its plans to deal with the consumer fallout of the failed funds.
The regulator come to an agreement with Macquarie to remediate Shield customers, while Equity Trustees will fight all allegations in court.
Equity Trustees also has exposure to First Guardian through NQ Super, while Netwealth is the other platform trustee with exposure to First Guardian and is also yet to publicly offer any indication about the direction the company would take but said that it is continuing to “explore all avenues available”.
Despite the First Guardian setback, Praemium reported total funds under administration was up 13 per cent to $67 billion over the past 12 months.
“With sustained adviser interest and expanding engagement across both custodial and non-custodial platforms, we remain confident in our long-term growth trajectory,” CEO Anthony Wamsteker said.
The $1.2 billion collapse of the Shield and First Guardian funds has seen the retirement savings of an estimated 11,000 Australians left up in the air as the regulator continues to investigate advisers, licensees, researchers and platform trustees involved across the advice chain.
ASIC said 140 advisers are being examined for their role in the collapse of the Shield and First Guardian master funds and recently brought more allegations against Venture Egg head Ferras Merhi who the regulator considers a central figure in the investigation.
Another MWL adviser banned
ASIC announced on Tuesday afternoon that it had banned MWL financial adviser Wade Lance Spooner for eight years due to inappropriate advice to certain clients which was not in their best interests.
The regulator alleged he recommended clients invest most of their superannuation into the high growth class and the growth class of Shield which had a limited trading history.
Spooner was also a member of MWL’s investment committee, provided Statements of Advice to certain clients that contained false and misleading statements by implying they would enjoy better returns by investing in Shield which included representations of the fund having a high-performing track record when it had only been in existence for a short period.
The banning order took effect on 25 July 2025, but Spooner lodged an application with the Administrative Review Tribunal for a review of ASIC’s decision as well as application for confidentiality orders pending the outcome of the ART review.
The appeal was heard on 25 September, and the ART refused the request for confidentiality orders on 20 October.
The regulator had announced in July the banning of two other MWL financial advisers in early July and two others later that month for similar reasons.
Sydney-based financial adviser Matthew Simon Bradley was banned for eight years, while Queensland-based adviser Isaac Jacob McQueen received a similar ban but for only four years.
Rocco D’Amelio was banned for seven years from 18 July 2025 and Robert Crossing for six years from 18 July 2025.
Dear Minister of Financial Services,
Where did the money go? Please see my comment to Professional Planner journal below.
Is Treasury twiddling its thumbs, looking for profit from the misery of others, while ASIC is trying to find someone else to blame and burn (Tony D’Aloisio ASIC and the financial scandal involving a Goldman Sachs CDO called “Timberwolf” 2010, which lost another $1 billion in superannuation)?
The Government gave $800 million to the Americans for submarines, which we may never get.
Australia is soft. Can you focus on dragging the real organised criminals into the Southern District Court of New York?
Can you ask Ambassador Rudd to pass this matter to the FBI, to follow the money trail and issue arrest warrants?
Can ASIC present evidence of wrongdoing into the Southern District Court of New York?
Is USA a common law jurisdiction?
Or, is financial legal enforcement in Australia as bad as a 3rd world country?
The legal strategy is, if perpetrator think they can wiz clients’ money offshore to escape Australian law enforcement, but get banged up by the FBI to end up in a US Penitentiary, they would rather give the money back. They would wish to be extradited to softee Australia.
Ross
Where did the money go? Money from the First Guardian and Shield funds disappeared due to alleged mismanagement, including directing millions to businesses connected to directors, making large offshore investments, and overstating asset values. Liquidators found evidence of potential breaches of duty, with investor funds used for personal expenses and lavish purchases, and expect investors to recover only a portion of their losses. The Australian Securities and Investments Commission (ASIC) is investigating the individuals and entities involved, including financial advisors and trustees.
Ha? Why is ASIC not engaging with the US FBI to chase where the money went, charge them and bring them before the Southern District Court of New York, where frauds from Dubai get prosceuted?