ASIC Sues Diversa Over 5,800 First Guardian Losses, Seeking Compensation for Illiquidity Warning Failures
Updated
Updated · Nine · Jul 12
ASIC Sues Diversa Over 5,800 First Guardian Losses, Seeking Compensation for Illiquidity Warning Failures
1 articles · Updated · Nine · Jul 12
Summary
Federal Court civil penalty proceedings target Diversa Trustees, with ASIC alleging the AusPrac trustee failed to warn members that First Guardian was illiquid before withdrawals froze and the fund entered liquidation.
5,800 investors were hit by the 2025 collapse, and ASIC is seeking compensation orders that could include a remediation program to recover losses.
Ariel Mack said her super balance fell from A$173,000 to just over A$5,000 after being advised in 2023 to roll into AusPrac, leaving her to rethink retirement.
Diversa has said it will vigorously defend the claims, while ASIC is not pursuing action against AusPrac itself.
AFCA has received more than 1,319 complaints over First Guardian, part of a wider A$1.1 billion twin collapse with Shield that also cost about 6,000 Australians money.