First Guardian, Shield expose deep flaws in Australia system

ABC NEWS (Australia)

The failed First Guardian and Shield superannuation schemes cost thousands of workers more than a billion dollars in retirement savings. They've also exposed deep flaws in how the 4.3 trillion-dollar superannuation sector is regulated.

Transcript

00:00This all started back with a lot of these investors back at the time of the pandemic.

00:08Back then they noticed that their super fund growth, and most of them were in superannuation

00:14retail funds, they noticed that their growth wasn't doing that well and so they'd do something

00:19that they think is innocent, they'd go on a social media ad on Facebook, they'd click

00:24on that ad that would say, you know, compare your super or find your lost super, and then

00:30that would give their details to a telemarketer that would ring them and with very hard selling

00:36tactics would convince them to take their money out of these regulated superannuation funds

00:43and put them into the less regulated schemes that have now collapsed.

00:49And often, you know, it wasn't the telemarketers that would get them to sign the contracts,

00:54the telemarketers would then put them on to financial planners, licensed financial planners

00:58who would send them contracts that they'd often docusign, and then they were locked in and

01:03many of them thought, you know, these were diversified funds, they would grow their super, and it's

01:10only later that they learnt that, you know, it wasn't as good as it was being sold to them.

01:16And now that they've collapsed, there's, you know, thousands of investors who individually

01:22have lost hundreds of thousands of dollars of their retirement savings, some more than

01:27a billion and are waiting to see if they can get that back.

01:29I can get that back.

01:30I can get that back.

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