Criminality a factor in Shield, First Guardian – Opposition

Mike Taylor

Managing Editor and Publisher

21 May 2026

Criminality was a factor in the collapse of the Shield and First Guardian funds and this should be reflected in whatever regulation evolves, according to the new Shadow Minister for Financial Services, Kevin Hogan.

In an interview session at the Stockbrokers and Investment Advisers Association annual conference in Melbourne, Hogan signalled that he understood the need not to punish the 98% of innocent financial advisers over the misdeeds of 2%.

He said that, in general terms, he believed that regulation should be kept to a minimum in circumstances where criminals had obviously be operating in the sector and “will do what they do anyway”.

“The road to ruin is paved with good intentions,” Hogan said in reference to how Canberra might address the Shield and First Guardian issues.

“When I look at what happened – criminals at one end, lead generators, platforms, rating agencies, ASIC – when we regulate we are regulating for the evil 2 per cent. Not the innocent 98%,” he said.

On the question of the future of the Compensation Scheme of Last Resort (CSLR), Hogan told SIAA Policy Manager, Michelle Huckel, that he believed that self-managed superannuation funds should be able to maintain access to the regime.

“I don’t think they (SMSFs) should be excluded but, having said that, there are different models about how they could be included and you would not want a situation where they are double-charged,” he said.

Hogan said he had had “a couple of chats” with the Assistant Treasurer and Minister for Financial Services, Daniel Mulino, about the situation but there remained a lot of moving parts.