A Sydney man who lost $150,000 in retirement savings says regulators and the government failed to protect thousands of Australians who had money in the failed fund.
The collapse of the First Guardian Master Fund and the Shield Master Fund saw 12,000 Aussie investors lose roughly $1.1 billion across 2024 and 2025.
Jason Berry, a 55-year-old engineer from Sydney, said he shifted about $450,000 out of his Rest super fund to First Guardian in 2023 after responding to advertising inviting people to compare super funds.
Mr Berry said he spoke with Aus Super Compare and was referred to financial adviser Rhys Reilly, who recommended First Guardian and presented forecasts showing the switch would leave him better off by retirement.
After making the change, the engineer first became concerned when his account balance appeared to remain unchanged for about six months.
He said he then tried to move his money, but Mr Reilly persuaded him to leave $150,000 in First Guardian while transferring the remaining $300,000 back to his industry super fund.
“There was nothing online to show me any issue with it, so I went ahead. Everything looked legitimate and above board,” Mr Berry told Daily Mail Australia.
“What else can you do as a superannuation holder? There was nothing online. There was nothing from ASIC. There was nothing to tell me there was a problem.”
He said he paid $3,500 for the advice that ultimately contributed to the loss.
Mr Reilly has since been banned by ASIC from providing financial services for 10 years. Mr Reilly is not charged with any criminal wrongdoing.
“I feel like a fool because I listened to a financial adviser that took $3,500 off me to leave money in there that I ultimately lost,” Mr Berry said.
He said the direct loss of $150,000 could translate into a much larger hit to his retirement once future earnings are considered, estimating the long-term effect could be closer to $300,000.
“You don’t sleep,” he told the outlet.
He said he had never considered that superannuation savings could simply disappear.
“Not once did you have it on your mind that in superannuation you could lose your money. That’s just unthinkable.”
Mr Berry said the compulsory nature of superannuation meant government could not avoid responsibility when safeguards failed.
“The government had all the information that we never had, and yet they’re pointing the finger at everybody else, not themselves.
“They knew long before I did that First Guardian was on the nose. They had all the information, they had the evidence, and they didn’t stop it.
“We invested compulsory money that we’ve earned in a government-run superannuation system, and yet the government (is) taking no responsibility for that.”
Mr Berry is among the thousands of investors affected by the collapse of First Guardian and Shield.
He said that, nearly two years on, more than 7,000 investors were still seeking accountability or compensation.
In his view, those affected had been left to work through complaint channels and possible legal action while also absorbing the financial and personal toll of the losses.
Mr Berry said some institutions, including Macquarie and Netwealth, had compensated investors, while others had not.
Lobby group SOS Save Our Super has been campaigning for compensation and the recovery of funds through legal avenues.
Melinda Kee, a First Guardian investor who leads the group, said the case showed broader failures across the system.
“What continues to astound me is that after almost two years of investigations, inquiries and finger-pointing, more than 7,000 Australians are still waiting for genuine accountability and compensation,” she told the publication.
As of June, just under 3,500 complaints had been lodged with the Australian Financial Complaints Authority, raising concerns that many investors may still not fully understand the extent of their losses.
ASIC’s enforcement response has included banning advisers tied to the failed funds.
Fifteen advisers linked to Shield and First Guardian were among 87 people barred from providing financial services during the 2025–26 financial year.
It comes as Pauline Hanson opened the door to ending compulsory super on Sunday, suggesting low-income earners would be better off taking the money now as a pay rise.
The Australian superannuation system currently holds over $4 trillion in total retirement assets, making Australia a global superpower in retirement savings.
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