Netwealth has reached an agreement with the Australian Securities and Investments Commission (ASIC) to fully reimburse around 1,000 members for their investments in First Guardian, minus any withdrawals made. This decision follows the company’s admission that it failed to adequately assess the financial risks before recommending First Guardian as an investment option to its clients.
The Australian Prudential Regulation Authority (APRA) has also imposed additional licensing conditions on Netwealth. These include the requirement to hire an independent expert to review any high-risk investment options offered by the company.
“Robust investment governance, especially regarding the onboarding and monitoring of platform investment options, is essential to protect member interests,” stated APRA Deputy Chair Margaret Cole. She added, “APRA will continue to prioritize investment governance, with a particular focus on the platform segment, throughout 2026.”
In light of the circumstances, ASIC has decided not to pursue a financial penalty against Netwealth.
“APRA will maintain a strong focus on investment governance, particularly in the platform segment, throughout 2026.”
ASIC said it would not seek a pecuniary penalty due to the exceptional circumstances.
The watchdog said this is due to the level of cooperation displayed by Netwealth “without waiting for an outcome of the First Guardian liquidation or proceedings against other parties involved”.
ASIC previously began Federal Court proceedings against Netwealth Superannuation Services Pty Ltd (NSS) and Netwealth Investments Limited (NIL), which are the trustees of the Netwealth Superannuation Master Fund (NSMF).
The regulator is also investigating First Guardian and Shield Master Fund.
Keystone Asset Management Ltd is the responsible entity of Shield Master Fund and is now also in liquidation.
ASIC also began investigating First Guardian’s responsible entity Falcon Capital, First Guardian and director David Anderson in late 2024.
Around 12,000 Australians lost an estimated $1.1 billion in the twin superannuation collapse.
