How to trust your financial adviser again after the First Guardian scandal
Retirement dreams for many Australians came crashing down recently, with the collapse of investment funds First Guardian and Shield Master. According to reports, some lost as much as $500,000 or more in superannuation, with little time left until retirement to rebuild.
So how did this happen? It was a two-part disaster. First, the scheme itself was an alleged Ponzi scheme. The operators took money for themselves and used new investors' cash to create a fake track record of stability.
But that fraud needed a way to find victims. That's where some compromised financial advisors came in. Motivated by huge commissions, they used their trusted position to funnel thousands of clients and their life savings directly into the trap - sometimes using aggressive sales tactics.
Does that mean you can’t trust your financial advisor? Not at all. There's always going to be some percentage of dodgy operators in every industry. First Guardian and Shield Master simply shopped their dodgy product around until they found a few unscrupulous advisers who were either willfully blind or knowingly complicit.
But there are plenty of principled advisers out there who want to help you reach your financial goals. So how do you filter out the bad actors? By exercising a little discernment next time you meet with an adviser.
How to properly vet your financial adviser
Here are some ways to vet your next financial adviser, whether you’re talking about super or any other investment, to ensure they have your best interests in mind:
- Ask about their philosophy. A good first step is simply to ask your advisor how they view their relationship to you. A good one will talk about partnership, education and your long-term goals - not just returns.
- Confirm exactly how they are paid. Advisors must document their fees and commissions, and the good ones will make sure you understand everything. Ask questions and don’t proceed until you’re crystal clear.
- Ask about their investment options. Do they compare different products to find the best fit for you, or are they limited to a pre-selected menu of choices?
- Check the ASIC register. The ASIC maintains a public Financial Advisers Register where you can search your adviser to verify their credentials and disciplinary history, if any.
At the end of the day, your adviser is there to help you reach your long-term goals. If anything seems off, you’re well within your rights to shop elsewhere.
One place you can usually find an advisor is through your current super fund. While their advisers probably won’t recommend a competitor’s product, they can help you work out your goals, recommend investment strategies and understand the overall landscape. It also gives you the opportunity to put the tips above to the test - and get a better sense of whether or not you’re comfortable where you are.
If you’re not, here are some other super funds you can look at.
Compare Australian super funds below
Superannuation
- Choice of growth or Index fund option
- Simple fee structure
- Digital dashboard to help you see where and how your super is invested
- 2025 Mozo Experts Choice Award winner - High Growth
Spaceship Super first launched in 2017, and says that above all else it’s focussed on building long-term value for its members. This is why the fund’s options are primarily suited to people who are looking to save for retirement for at least the next 10 years, or longer. Members have a choice of the GrowthX option, which has a focus on Global technology companies, and the Global Index option which passively invests in growth assets, particularly international shares. Both options have a competitive performance track record according to Spaceship (based on annualised performance since inception) and have a simple fee structure.
Spaceship Super’s digital platform helps you to keep track of your balance, and also gives you visibility of where and how your super is invested. If you’re saving for your first home, you can also set up a first super saver account.
Winner of a Mozo Expert Choice Award for Exceptional Super in the High Growth Category.
Aware Super
- Aware Super manages over $190 billion in retirement savings for over 1.1 million Australians
- Track record of delivering super long-term returns – 8.09% p.a. over 10 years to 31 March 2025 in the High Growth option, where a majority of members are invested.
- Winner of the 2025 Mozo Experts Choice Awards for Exceptional Super Fund for Gen X.
- Investment flexibility: Choose from a range of diversified options or single asset class options, or MySuper Lifecycle which automatically tailors your investment mix to your age over time.
Aware Super is one of Australia’s largest industry funds, managing over $190 billion for more than 1.1 million members. With a range of investment options including diversified, high-growth, and sustainable choices, Aware Super allows you to tailor your super to match your financial goals and risk appetite. As a profit-to-member fund, Aware Super prioritises delivering strong returns^ while keeping fees competitive^^, so more of your money stays invested for your future. It’s also committed to responsible investing, focusing on industries like healthcare, education, and clean energy to create positive long-term impacts. It has tools and resources to help you stay on top of your super including a mobile app, retirement planner, calculators as well as online and in-person educational events and retirement planning and advice (fees may apply).
Superannuation
- Strong performance and low fees
- Your choice of professionally-managed portfolios or directly investing in options like ASX 300 shares, ETFs, and managed funds
- Award-winning in-app experience
- Easy-to-use digital dashboard for managing your portfolio
Superhero Super is designed for Australians who want greater control over their super, offering a unique way to tailor their retirement savings. Unlike traditional super funds, Superhero Super lets you invest directly in a range of ASX 300 shares, ETFs, and managed funds, giving you the flexibility to shape your portfolio based on your own financial goals and risk appetite. In addition to this, Superhero Super boasts a selection of diversified investment options managed by Mercer, which you can select from if you’d rather leave your super to the professionals.Superhero’s easy-to-use platform puts your super in your hands, allowing you to track and manage your investments in real-time.
And the best part? Superhero Super’s fees are lower than 75% of other super funds.
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