ASIC has corrected earlier testimony from ASIC deputy chair Sarah Court that 140 advisers are implicated in the Shield and First Guardian master fund collapses, clarifying that it’s “individuals and entities” that make up the figure.
The correction, confirmed by the regulator to Professional Planner, was raised by the Financial Advice Association Australia who inquired with the regulator over concerns the figure wasn’t accurate.
Court told a Parliamentary Joint Committee hearing in September that that 20 of those individuals had already faced court action, 50 were currently under investigation and 70 more were on a “list”. The regulator since clarified this included more than registered financial advisers.
The admission at the hearing was surprising, given earlier indications from the regulator that the number of advisers implicated in the failed scheme was much smaller.
ASIC declined to confirm the specific number of advisers are under investigation citing due to the complexities of the ongoing investigation.
Court will discuss the regulator’s enforcement action over the collapsed funds at the Professional Planner Advice Policy Summit, which will be hosted at the National Press Club of Australia in Canberra on 23-24 February 2026.
The regulator has cancelled all licensees that have been listed as being involved in the scheme, except for Sequoia-owned InterPrac Financial Planning.
Last month, ASIC banned former MWL Financial Services and United Global Capital adviser Jovan Videkanic for seven years for inappropriate advice related to the Global Capital Property Fund and Shield, as well as MWL adviser Wade Lance Spooner for eight years due to inappropriate advice to certain clients which was not in their best interests.
In July, the regulator banned four other MWL financial advisers due to inappropriate advice related to Shield and First Guardian. Matthew Simon Bradley was banned for eight years, Isaac Jacob McQueen for four years, Rocco D’Amelio for seven years and Robert Crossing for six years.
InterPrac also licensed Ferras Merhi, who ASIC believes to be a central figure in the distribution of the funds and is alleged to have received payments from both funds for marketing.
ASIC alleged Merhi signed 6000 Statements of Advice that directed clients into the Shield or First Guardian products, which failed to act in the best interests of clients, gave conflicted advice, and provided defective SOAs.
Merhi, who ran the Venture Egg advice business, also separately ran his own licensee Financial Services Group Australia. He’s also accused of receiving inflated loans to buy his advice businesses.
The collapse of the funds has become one of the corporate watchdog’s highest priorities with $1.2 billion of retirement savings across 11,000 investors at risk.
The regulator alleged that advice firms received payments from the Shield and First Guardian funds who in turn used lead generation services to funnel customers into the funds without factoring in their best interests.
ASIC commenced stop orders against the Shield and First Guardian funds due to concerns of mismanagement of investor money, including the funding of pet investment projects of the directors or for personal expenses including luxury cars and mansions.
The regulator is also reviewing other parts of the advice chain including the role played by trustees and ratings houses.
Macquarie, which acted as a trustee for its wrap platform that hosted Shield, has since agreed to remediate Shield investors directly, purchasing $321 million worth of member holdings in the fund. The wealth giant is slated to recoup some of the lost millions via the liquidation process with the rest absorbed on the ASX-listed company’s balance sheet.
Netwealth has applied for government assistance to remediate members, with Equity Trustees and Diversa Trustees also expected to pursue the same move.
