Why Governance Matters: Lessons from the Guardian Shield Collapse
The Shield and First Guardian collapse is a reminder that investment risk doesn't only come from markets — it comes from what's happening behind the scenes.
While market movements often attract the most attention, it is the decision-making frameworks operating beneath an investment that ultimately determine outcomes. Events like these have raised understandable questions among investors about how governance functions in practice and what strong oversight should look like.
Key Takeaways
Strong governance works behind the scenes, shaping decisions and keeping portfolios aligned with long-term goals.
MGD applies consistent governance standards across all client relationships, regardless of adviser.
Independent partners at WTW, Morningstar Australia, and Quilla provide an additional layer of research and oversight.
How MGD Approaches Governance
At MGD, governance and oversight principles are taken very seriously and form the backbone of the Investment Strategy Group’s philosophy and processes. These business-level disciplines flow through to all clients via their personalised advice relationships, and regardless of who your experienced Client Adviser is, the same strong governance and oversight standards apply equally across the firm.
Governance sits at the heart of how MGD manages and oversees investment decisions. It shapes the way opportunities are assessed, how external specialists are engaged, and how the oversight supporting client portfolios is structured. It is a core part of how MGD aims to deliver consistency, discipline, and resilience over time.
Understanding Governance in Practice
To provide insight into how these safeguards operate in practice, MGD has produced an educational video resource to help investors better understand investment governance and the checks and balances that sit behind investment decision-making.
The conversation is led by Stephen Furness, Director, MGD Wealth and Chief Investment Officer, MGD Private, and Robbie Parkinson, Private Client Adviser, Wealth and Senior Investment Specialist, alongside representatives from MGD’s external research and governance consulting partners at WTW, Morningstar Australia, and Quilla Consulting.
Two video options are available depending on how far you would like to explore the topic.
Option 1: Overview – A Short Introduction to Governance (14 minutes)
For those seeking a concise explanation of how governance supports sound investment decision-making, the short overview video provides a clear and accessible starting point. Stephen and Robbie outline the core elements of MGD’s approach, including clear roles, purposeful oversight, and the independent challenge provided by external research partners.
Option 2: Extended Version – Including Consultant Partner Interviews (50 minutes)
The extended video includes everything from the overview, plus additional discussion with representatives from Willis Towers Watson, Morningstar, and Quilla — the external consultants who support MGD’s research, due diligence, and portfolio oversight processes. Their perspectives provide meaningful insight into how independent organisations apply their own governance frameworks when working with MGD, and how this layered approach strengthens operational discipline and risk management.
This is the recommended option for those who want to understand not only MGD’s internal frameworks, but also how consultant partners operate with their own governance structures across research, implementation, and ongoing monitoring.
→ Watch the extended governance interview
Strong governance works behind the scenes — shaping decisions, setting guardrails, and helping portfolios remain aligned with their intended purpose through changing environments. The Shield and First Guardian collapse is a stark illustration of what can go wrong without it.
If you would like to discuss anything raised in the presentation, or how this relates to your own arrangements, reach out to your MGD Wealth advisory team.
Disclaimer:
Stephen Furness and Robbie Parkinson are Representatives of MGD Wealth Ltd. AFSL 222600, ABN 53 009 079 725. Any advice included in this article is general and has been prepared without taking into account your objectives, financial situation or needs. As such, you should consider its appropriateness having regard to these factors before acting on it. Before you make any decision about whether to acquire or continue to hold a financial product, you should obtain and read the relevant product disclosure statement.
Tax advice is provided by MGD Tax, ABN 22 355 316 063. Any tax information refers to current laws, is not based on your unique circumstances and should not be relied on as tax advice.
Liability limited by a Scheme approved under Professional Standards Legislation.
