ASIC sues Equity Trustees over alleged First Guardian failures that cost members $65m

Equity Trustees Superannuation is facing civil penalty proceedings filed by the Australian Securities and Investments Commission (ASIC) in the Federal Court, alleging the trustee failed to exercise adequate care, skill and diligence when it approved investments in the First Guardian Master Fund.

The action alleges Equity Trustees allowed about 2,700 members of the NQ Super & Pension fund to invest more than $65 million in First Guardian between June 2023 and March 2024 without obtaining critical documents including the fund's constitution, audited financial statements and compliance plan audit.

ASIC further alleges Equity Trustees permitted members to invest 100 per cent of their superannuation balances in First Guardian despite evidence the fund was or may have been illiquid.

The proceedings mark the second time ASIC has taken action against Equity Trustees Superannuation Limited (ETSL), the superannuation subsidiary of EQT Holdings (ASX: EQT), in relation to its broader First Guardian and Shield Master Fund investigations and the fifth against a superannuation trustee in the sprawling enforcement campaign. 

ASIC has brought more than 26 matters under investigation or before the Federal Court in connection with the two funds, with more than $420 million repaid to thousands of investors to date.

In a statement to the ASX this morning, EQT Holdings says while it is reviewing ASIC's statement of claim, the company has reaffirmed its intention to fight the civil proceedings.

“As with the Shield Master Fund, we believe ETSL acted in line with its fiduciary duties and obligations under the Corporations Act and Superannuation Industry (Supervision) Act.," says Equity Trustees managing director Mick O’Brien.

“We believe that First Guardian is primarily a case of alleged and widespread fraud, and that the focus should be on those parties.

“The actions by regulators and government to expose the misconduct of now-banned financial advisers and allegedly fraudulent promoters, responsible entities and investment managers are commendable, as are the initiatives to strengthen consumer protections."

EQT calculates member losses from First Guardian to total $70 million out of the overall total of First Guardian investor losses estimated by liquidators at $446 million.

The company says it continues to assist the liquidators of First Guardian to achieve "the best possible returns for members from the liquidation process".

ASIC's deputy chair Sarah Court says the action against Equity Trustees is part of the regulator's 2026 enforcement priority into the collapse of First Guardian and related funds.

"We allege that a prudent superannuation trustee in Equity Trustees’ position would not have approved the First Guardian classes as investment options based on the information it had available," says Court.

"Superannuation trustees play a critical role helping their members save for retirement, but we allege Equity Trustees failed to put the interests of their members first.

"This is the second action we’ve taken against Equity Trustees and the fifth against a super trustee as part of our First Guardian and Shield Master Fund investigations."

ASIC says it has now started legal proceedings against every super trustee that made available Shield or First Guardian.

"More than $420 million has been repaid to thousands of investors through ASIC’s work to date," says Court.

"We currently have more than 26 matters under investigation or before the Federal Court and we expect further action to follow."

The latest action follows ASIC's September 2025 proceedings against Equity Trustees over the Shield Master Fund, which the trustee is also defending.