Wollongong mum, Isla Becker, was eight months pregnant with her baby, now four months old, when she received shocking news. The super fund that she’d invested 80 per cent of her retirement savings into had collapsed — and $116,000 of her savings had vanished.

“I had only recently begun taking a more active interest in my super, including salary sacrificing, and I was proud to see my balance growing,” says Becker. After completing an online comparison — similar to those used for health or car insurance — she was contacted by a consultant to review her super options.

“I was set up with a financial consultant, Rhys Reilly, who signed me up to YourChoice Super and invested my money into the First Guardian Fund,” says Becker. “They provided what appeared to be a comprehensive report, including projected retirement balances, based on this new structure. It all seemed legitimate and encouraging.”

She thought her future was in safe hands, until she saw the news break.

On 17 March 2025, the Australian Securities and Investments Commission (ASIC) announced they had applied to the Federal Court for the “appointment of liquidators to Falcon Capital Limited” — the responsible entity for First Guardian.

As stated in a media release: “ASIC is concerned about the management and operation of First Guardian and the associated risks to investors.”

Since then, financial planner, Rhys Reilly, and his company, Rhys Reilly Pty Ltd, have been named in the investigation.

“I didn’t fully grasp the seriousness of the situation until I logged into my super portal,” says Becker. “I saw a deduction of more than $100,000 — and my heart sank.”

She is one of approximately 6,000 people who invested their money, including their retirement savings, into First Guardian — totalling more than $1 billion.

Initially, she was hopeful her money wouldn’t be lost. “I joined the Save Our Super Facebook group and followed the media coverage on [the news],” she recalls. “I was encouraged to see that some people had been reimbursed, but I wasn’t.”

Currently, over 2,100 people are members of the Facebook group, First Guardian and Falcon Superannuation Discussion — including many familiar faces.

“When I joined the Facebook group, I was amazed by how many local people and familiar names I spotted,” a mum of two from Kiama who lost $70,000 told The Bugle.

“I spoke to someone in Jamberoo who lost more than $150,000. At least, we’ve been able to connect, share tips and support each other.”

Since then, ASIC has taken court action to preserve any remaining assets of Falcon Capital and First Guardian, so they can be recovered for investors. They are also actively “exploring avenues for compensation for victims”.

A video on the ASIC website states: “At this stage it is unclear how much of the funds that were invested can be recovered and returned to people.” The Commission warns of a trend of “high risk of super-switching schemes” in Australia that are often promoted by sales calls after people click on online ads.

Financial planner Joe Calcraft, who alongside business partner Anthony Hourigan forms Cloudbreak Wealth in Kiama, hadn’t heard of First Guardian before its collapse, and none of his clients were impacted.

He advises anyone affected to lodge a complaint with the Australian Financial Complaints Authority (AFCA), “the sooner the better”.

“You can also find out if you can access the Compensation Scheme of Last Resort (CSLR), which is a fund that has been set up to provide ‘last resort’ compensation, which steps in if all other avenues have been exhausted,” he adds.

The First Guardian collapse is the second scandal in the Australian market in the last two years. In 2024, another scheme, Shield Master Fund, collapsed after its responsible entity, Keystone Asset Management, went into voluntary administration.

According to ASIC estimates, around 12,000 Australians poured $1.1 billion in retirement savings into the two funds, amid what ASIC chair Sarah Court has described as “industrial-scale misconduct.”

“Planning for your retirement should be a time of joy, however it can be a time of angst given the gravity of decisions that need to be made,” says Calcraft.

“If someone has contacted you, usually through a cold call without your consent to try and advise — sell — you a product for an investment or superannuation, it is usually not going to be in your best interest.”

He points out this type of selling has been illegal since October 2021 under the anti-hawking provision.

“If you are being offered ‘high guaranteed returns’ or you’ve been advised to put all your money into one single brand or investment, it is usually too good to be true,” he says. “Don’t be afraid to get a second opinion and certainly don’t feel embarrassed or think you are asking a silly question when it comes to your life savings.”

His advice is echoed by Nicola Beswick, former lawyer, financial advisor and founder of White Rabbit Advisory.

“Events like this should certainly raise questions, because they should never happen,” she says. “Australia’s superannuation system is heavily regulated and operates under strict governance and compliance frameworks. I would always recommend early financial advice to gain the right structure for you and the confidence that comes with it.”

She says this is a great time to boost your financial literacy: “Take a look at the diversification of your superannuation investments and the credentials of those overseeing your investments. It’s also always a good step to make sure that your beneficiary nominations are up to date.”

For locals like Isla Becker, the wait is not over. She is grateful that her husband’s super remained with a “larger, more established fund”, as she is aware of local families who lost their entire combined savings.

“I hope to be reimbursed as much as possible, so I don’t have to find alternative ways to rebuild my retirement savings,” she says. “I want to see the individuals responsible held accountable, and for stronger regulations to be put in place so this cannot happen to thousands of Australians again.

“I was genuinely trying to take control of my financial future, and instead I lost a significant portion of my super. It has shaken my trust in the system.”