Daily London
Netwealth struck a deal with the Australian Securities and Investments Commission (ASIC) to refund 100 per cent of the amount, less any money withdrawn, that was invested in First Guardian to 1000 of its members.
The company admitted to ASIC it failed to understand or evaluate the financial risk before pitching First Guardian an investment option to clients.
The Australian Prudential Regulation Authority (APRA) has also imposed several license conditions on Netwealth, including engaging an independent expert to review high-risk investment options.
“Robust investment governance, including in relation to onboarding and monitoring of platform investment options, is critical to safeguard the interests of members,” APRA Deputy Chair Margaret Cole said.
“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.
