ASX-listed financial services firm Netwealth has agreed to repay a total of $100 million to members affected by the collapse of the First Guardian superannuation fund, after thousands of Australians lost their retirement savings.
Under an agreement reached with the Australian Securities and Investments Commission (ASIC), Netwealth will refund 100 per cent of the amount invested in First Guardian—less any withdrawals—to about 1,000 members.
Netwealth admitted to ASIC that it failed to properly assess and understand the financial risks before offering First Guardian as an investment option to clients. Affected members are expected to receive reimbursement by January 30.
The Australian Prudential Regulation Authority (APRA) has also imposed additional licence conditions on Netwealth, including a requirement to appoint an independent expert to review high-risk investment options.
“Robust investment governance, including the onboarding and monitoring of platform investment options, is critical to safeguard the interests of members,” APRA Deputy Chair Margaret Cole said, adding that APRA will maintain a strong focus on investment governance through 2026.
ASIC said it would not pursue a financial penalty, citing Netwealth’s high level of cooperation and its decision to compensate members without waiting for the outcome of the First Guardian liquidation or related legal proceedings.
ASIC Deputy Chair Sarah Court described the repayment agreement as a “welcome outcome” for affected Australians, noting that more than 1,000 members faced significant uncertainty after the fund’s collapse. She said ASIC’s action would ensure members are restored to their pre-loss position.
The case marks ASIC’s fourth action against a trustee following the collapses of First Guardian and Shield Master Fund. The regulator has already commenced Federal Court proceedings against Netwealth Superannuation Services Pty Ltd and Netwealth Investments Limited, trustees of the Netwealth Superannuation Master Fund.
ASIC continues to investigate First Guardian, Shield Master Fund, and their respective responsible entities. Around 12,000 Australians are estimated to have lost about $1.1 billion in the twin superannuation collapses.
Earlier this year, Macquarie Investment Management Ltd confirmed its investors would be fully reimbursed by September 30.
