ASIC targets misleading pricing and fund collapses in major 2026 crackdown

ASIC has revealed its 2026 enforcement priorities, with investigations into the $1bn-plus Shield and First Guardian collapses leading its ambitious crackdown on financial misconduct.

The explosive collapse of Shield and First Guardian is in ASIC’s sights for a major 2026 crackdown. Picture: Jane Dempster

Misleading pricing driving up the cost of living, insurance complaints and claims handling, and the explosive collapse of Shield and First Guardian are in ASIC’s sights for a major 2026 crackdown.

ASIC deputy chair Sarah Court said more than 40 people were continuing to investigate the collapse of the Shield and First Guardian Master Funds as one of the regulator’s “largest and most complex cases ever”.

“We have been focused on returning available money to investors and the next stage is holding those responsible to account,” she said on Thursday, unveiling the watchdog’s enforcement priorities for next year.

MASIC deputy chair Sarah Court said more than 40 people were continuing to investigate the collapse of the Shield and First Guardian Master Funds.

“Those involved extend to financial advisers and their licensees, lead generators, superannuation trustees, auditors, research houses and, at the very heart of the misconduct, the responsible entities of the failed funds themselves.

“We already have had some 45 individual court appearances and there remains much work to do.”

Shield, a property-focused retail fund, collapsed last year leaving 5800 investors at risk of losing close to $500m in retirement savings.

ASIC announced in August that it was suing national superannuation trustee Equity Trustees for allegedly failing to conduct due diligence when it oversaw the investment of around $160m of retirement savings into Shield in 2023 and 2024.

ASIC’s probe is also looking into Equity Trustees’s involvement in another investment disaster, First Guardian Master Fund, which was put into liquidation in April, putting 6000 investors at risk of losing up to $450m in superannuation savings.

ASIC deputy chair Sarah Court and chair Joseph Longo. Picture: John Appleyard

Ms Court revealed ASIC will also be targeting misleading pricing and poor private credit practices.

“Our 2026 enforcement priorities reflect emerging risks like those in private credit, as well as the challenges Australians face while contending with higher living costs,” she said.

“ASIC will zero in on misleading pricing practices in the financial services sector, particularly those that make everyday costs harder for Australians.

“In line with our increased surveillance across private credit, we won’t hesitate to take enforcement action to stamp out misconduct in the sector so we can support confident and informed participation, investor protection and market integrity.”

She said financial reporting misconduct, including failure to lodge financial reports, will be another key priority for next year.

“We have launched a surveillance focused on non-lodgement of financial reports by large proprietary companies, and we expect to complete this next year,” she said.

“Financial reports provide shareholders, creditors and the public with important information to enable them to make informed decisions.”

Ms Court said they will continue to crack down on insider trading, predatory practices targeting financially struggling consumers and super trustees failing their members.

“In the last 12 months, we’ve doubled the number of new investigations and nearly doubled the number of new matters filed in court,” Ms Court said.

“We’ve also worked hard to increase our criminal prosecutions, and seen lengthy sentences imposed for financial fraud offences.”

Originally published as ASIC targets misleading pricing and fund collapses in major 2026 crackdown