Financial advice in 2025 will be defined by the worst scandal since the Hayne royal commission – the $1 billion collapse of Shield and First Guardian.
While news of the failed funds began in the previous year with stop orders placed in the first half of 2024 on both funds, more details about the sophisticated – or “industrial scale” – process in which 12,000 Australians saw their retirement savings moved into these limited track managed investment schemes rocked the financial advice profession, undermining layers of consumer safeguards that were meant to prevent this type of misconduct.
Unsurprisingly, news coverage and investigations dominated the most-read stories for the year on Professional Planner. Outside of that, ASIC’s work on managed accounts and private credit drew plenty of interest, as well as failings from the super funds including HESTA’s admin drop out – which has since seen the fund receive additional licensee conditions – and the cyberattack against five major funds.
A few honourable mentions before we get to the top 10: AZ NGA chief executive Paul Barrett’s views on the rise of the advice platform fell just outside the top 10 (knocked out by a few major stories in the past month), along with news that ASIC investigating is schemes similar to Shield and First Guardian, an op-ed from myself about InterPrac’s continued deflection of accountability in the collapse of Shield and First Guardian, and the most ‘irritating’ behaviours exhibited by advisers according to Morningstar research (fraud wasn’t one of them, but let’s check in again after next year’s survey).
- Shield, First Guardian investors received allegedly fraudulent SOAs
An investigation by Professional Planner revealed how victims of Shield and First Guardian never spoke to the adviser who’s named on the Statement of Advice, which came months before it was publicly revealed thousands of SOAs were allegedly signed by only two advisers within just a few years.
- Inside Viridian’s project to combat vertical integration
Another Professional Planner investigation found a number of aggrieved former Viridian advisers had accused the firm of harbouring conflicts of interest emanating from its separately managed accounts offering.
- 140 advisers in ASIC’s crosshairs over Shield, First Guardian
ASIC has since clarified it was 140 “individuals and entities”, not advisers, being examined in relation to the collapse of the Shield and First Guardian funds.
- New look SOA proposal ‘disappointing’
The government’s proposed replacement of Statements of Advice with Client Advice Records in draft legislation for the next phase of the Delivering Better Financial Outcomes reforms were criticised for not bringing any tangible regulatory relief.
- Govt to crack down on ‘inappropriate’ advice fee charging
The most recent news story to make the top 10, new Minister for Financial Services Daniel Mulino announced plans in the final month of 2025 to introduce a cooling-off period for consumers switching super funds, limit “inappropriate” financial advice fee charging and make changes to anti-hawking laws to mitigate the impact of lead generators. The changes are part of the government’s response to the collapse of Shield and First Guardian.
- Shield, First Guardian failed to get past HUB24 platform DD
One of the country’s fastest-growing platforms declined to host the Shield and First Guardian master funds after both products failed to pass due diligence screening, while several of its peers are under investigation by ASIC.
- First Guardian-linked adviser allegedly received inflated loans from fund
ASIC alleged in court that Ferras Merhi, the adviser considered a central figure into the investigation of the failed Shield and First Guardian master funds, received loans that exceeded the purchase price of one of his firms.
- Court docs lay bare how InterPrac failed Shield, First Guardian clients
ASIC’s court filings in its action against InterPrac Financial Planning detail how the licensee let Shield and First Guardian clients down at every step of the advice process, from failing to step in when misconduct became apparent to providing template responses that dismissed even legitimate complaints.
- ASIC kicks off probe into SMA conflicts of interest
The corporate regulator issued ‘please explain’ notices to licensees and separately managed account (SMA) providers demanding information about any sales and revenue targets, inducements and benefits to offer SMAs to retail clients.
- DBFO Tranche 2 arrives, swapping SOAs for ‘CARs’
Weeks before the federal election, former Minister for Financial Services Stephen Jones released draft law on Tranche 2 of Delivering Better Financial Outcomes, unveiling the replacement of Statements of Advice with the new “Client Advice Record” required to be kept on file but not issued to clients unless requested. The more controversial changes to the Best Interests Duty and introduction of a “new class of adviser” were left out, as foreshadowed in by Professional Planner.
Professional Planner will return in 2026 with the first bulletin on Tuesday, 6 January. From the team, we wish you a great holiday season.
The Only Just way to sort out this debarkle That followed ASIC’s Liquidation of First Guardian and Shield Master Funds is the PAY NOW – RECOVER LATER option which was one of a number of options put forward the SOS Save Our Supers Group Committee which represents nearly two thousand members and is growing.
This will help preserve the Australian way and prove the Government supports its own People as first Priority and that the Australian Justice system protects Australians, not just Big Business