Richard* made the decision to engage a financial adviser because he knew his limitations. He was time‑poor, approaching retirement, and lacked the specialist expertise required to successfully manage a self‑managed superannuation fund (SMSF).

“Managing an SMSF is an enormous undertaking, and I wasn’t under any illusion that I had the time or knowledge to do it myself,” Richard said.

Having worked with several advisers over the years, including one whose poor advice led to significant financial losses, Richard was acutely aware of the importance of choosing carefully.

As he neared retirement, protecting his superannuation became paramount, and he wanted reassurance that his savings were in safe hands.

Based on the firm’s strong reputation, Richard selected a large, well‑known financial services provider, believing this would ensure stability and steady growth for his retirement nest egg.

For a time, everything appeared to be on track. However, around 2022, Richard began noticing substantial declines in the value of several investments held within his SMSF. By then, the losses were irreversible.

Richard was not alone. Many other clients experienced similar outcomes, losing a significant portion of the money they had entrusted to what they believed were experts.

“Some people think I should have been monitoring every investment line by line,” Richard said. “To them I say, ‘You don’t buy a dog and bark yourself.’ I paid professionals for their expertise. I trusted them.”

What followed was a long and emotionally draining process. Over the next four years, Richard became involved in a class action lawsuit against the firm and lodged a complex complaint with the Australian Financial Complaints Authority (AFCA).

“AFCA had a large number of similar complaints to assess, Richard explained.

So, when I finally received my determination, I was relieved to learn about the Compensation Scheme of Last Resort (CSLR) and that I might have a chance to recover some of my losses.”

Richard subsequently lodged a claim with the CSLR. In February 2026, he received compensation, providing both financial relief and a sense of closure after years of uncertainty. 

“Although I didn’t receive the complete value of my loss, I was incredibly grateful to receive anything at all.”

*Name changed for privacy