First Guardian and Shield Master Fund collapse: what investors should know

What are the options?

If you’ve suffered financial loss due to advice or conduct relating to the Shield and First Guardian Master Funds, you may be eligible to lodge a complaint with AFCA. If AFCA finds in your favour but the advice firm is unable to pay compensation, you may be able to access the government’s Compensation Scheme of Last Resort.

Here are your options:

1. Lodge a complaint with AFCA:
   You may be eligible to lodge a complaint through AFCA. If they rule in your favour and it’s recognised that the advice you received was inappropriate or unlawful, you may be awarded compensation.
2. Access the Compensation Scheme of Last Resort:
   If your adviser or their licensee is unable to pay the compensation awarded by AFCA, you may be eligible to claim through the government’s Compensation Scheme of Last Resort, which is a safety net for unpaid awards
    

Extension of the compensation claim period

Many investors affected by the collapse of the Shield and First Guardian Master Funds have delayed taking action because they believed they were too late to complain to AFCA — especially where an advice firm is insolvent or in liquidation.

If that’s why you haven’t lodged yet, AFCA’s recent position means you may still be able to pursue a complaint.

In March 2026, AFCA confirmed it is keeping access to dispute resolution open for affected investors while the full extent of consumer harm continues to emerge — including by not expelling insolvent firms involved in the collapse “at this time”, and by treating some previously published membership end dates as no longer fixed.

Which firms is AFCA still dealing with?

AFCA’s March 2026 position applies to insolvent firms known to be involved in the Shield and First Guardian collapse, meaning access to AFCA remains open “at this time”. This includes major advice firms linked to these events, such as:

• Interprac Financial Planning
• MWL Financial Services
• Financial Services Group Australia
• United Global Capital (UGC)
• Next Generation Advice

What is the Government Compensation Scheme?

The Compensation Scheme of Last Resort is a government initiative designed to protect consumers who have been awarded compensation through AFCA but haven’t received payment. However, the scheme has strict eligibility requirements and financial limits, which can make the process complex.

Red flags to watch out for

If you’re unsure whether your financial adviser acted inappropriately, look out for these common warning signs:

• Unsolicited cold calls about your super or investments
• Pressure to act quickly or invest on the spot
• Recommendations to switch your super fund without clear justification
• Lack of transparency about fees, risks, or product details
• Advice that doesn’t reflect your personal financial goals or situation

If any of this sounds familiar, you may have grounds to take legal action.

How Maurice Blackburn can help

We’ve helped thousands of Australians recover compensation for losses caused by negligent or misleading financial advice. Our experienced legal team understands the complexities of:

• AFSL structures
• Authorised representative relationships
• The AFCA complaints process
• The Compensation Scheme of Last Resort

We’re currently assisting clients impacted by similar financial collapses, including Dixon Advisory and the Shield Master Fund.

If you believe you’ve been affected by Venture Egg or Interprac Financial Planning Pty Ltd, our experienced financial services dispute team will assess your situation and eligibility for AFCA and government compensation scheme claims, carefully guide you through the process and help you recover what you’re entitled to.

Time limits may apply, and AFCA membership status can change. We’re here to help you understand your rights and take the next steps if you've been affected. Contact us today.