media release (25-307MR)

Netwealth admits to First Guardian failures and agrees to compensate affected members $100 million

Published

Netwealth has agreed to pay over $100 million in compensation to more than 1,000 Australians who invested their superannuation in the First Guardian Master Fund and has admitted it contravened the Corporations Act.

ASIC has commenced proceedings in the Federal Court against Netwealth Superannuation Services Pty Ltd (NSS) and Netwealth Investments Limited (NIL), as trustees of the Netwealth Superannuation Master Fund (NSMF).

NSS and NIL have admitted they failed to obtain and therefore did not assess sufficient information about the First Guardian Master Fund, or make sufficient independent enquiries, to understand or evaluate the investment risk in the First Guardian Diversified Class and Growth Class prior to or while offering them as investment options to NSMF members.

ASIC will seek orders that NSS and NIL failed to do all things necessary to ensure that the financial services covered by their financial services licences were provided efficiently, honestly and fairly.

ASIC has also accepted a court-enforceable undertaking from NSS and NIL to ensure members are compensated 100% of the amounts they invested in First Guardian less any amounts withdrawn. The compensation payments will be made by 30 January 2026.

ASIC Deputy Chair Sarah Court said the ongoing investigation into First Guardian including work to recover available money for investors was at the heart of ASIC’s enforcement priorities.

‘This is a welcome outcome for many Australians and stems the significant losses that threatened their retirement savings.

‘More than 1,000 members who invested through Netwealth’s superannuation platform were facing huge uncertainty when First Guardian collapsed.

‘ASIC’s investigation will ensure Netwealth restores these members to the position they were in before they saw their savings eroded.

‘This is the fourth action we’ve taken against a superannuation trustee in relation to our ongoing First Guardian and Shield investigations, and follows ASIC securing the payment of $321 million to Shield investors by Macquarie’, the Deputy Chair said.

NSS and NIL have admitted the allegations in the proceeding. It is a matter for the Court to determine whether the declarations are appropriate.

ASIC will not seek a pecuniary penalty due to the exceptional circumstances of this matter, including:

  • the strong public interest in obtaining a timely court-based outcome which will encourage other superannuation trustees to comply with their legal obligations in the context of choice platforms,
  • the interests of providing affected members who invested into First Guardian through a regulated superannuation fund with certainty in a timely manner, and
  • the level of cooperation demonstrated by NSS and NIL in agreeing to compensate members 100% of the amounts invested in First Guardian less any amounts withdrawn, without waiting for an outcome of the First Guardian liquidation or proceedings against other parties involved.

‘The action we’ve taken in the last few months puts super trustees well on notice: they are gatekeepers for their members’ retirement savings and ASIC expects them to take active steps to monitor the funds they make available on their choice platforms.

‘ASIC now has 12 cases underway against 20 defendants and is continuing to investigate misconduct relating to Shield and First Guardian to hold those involved to account’, the Deputy Chair said.

ASIC notes that APRA accepted a Court Enforceable Undertaking from NSS on 17 December 2025 to uplift its processes and procedures for investment governance. ASIC and APRA continue to work closely together to hold trustees of regulated super funds to account consistent with ASIC and APRA’s respective mandates.

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Background

ASIC will seek declarations that NSS and NIL contravened sections 912A(1)(a) and 912A(5A) of the Corporations Act.

NSS and NIL are subsidiaries of Netwealth Group Limited which is listed on the ASX. NIL (until 30 June 2021) and NSS (from 1 July 2021) were the trustees of the NSMF.

The NSMF is a public offer retail superannuation fund. NSMF has around 115,000 member accounts and over $40 billion in funds under management.

The NSMF offers members access to two choice superannuation products – Super Accelerator Core and Super Accelerator Plus.

The First Guardian Growth and Diversified classes were first made available to adviser-led members through Netwealth’s Super Accelerator Plus product on 26 March 2021. The First Guardian classes were closed to new investments on 28 December 2022.

Between 26 March 2021 and 28 December 2022, approximately $128.5 million was invested across the two First Guardian classes by 1,303 members. 1,084 members were still invested in First Guardian when Falcon Capital froze redemptions in May 2024, with member investments totalling approximately $100.6 million.

In May 2024 Falcon Capital Limited, the Responsible Entity of First Guardian, temporarily suspended the processing of applications and withdrawals from First Guardian, to allow for a restructure of the fund and its underlying assets. The suspension was never lifted and in February 2025 ASIC took action to freeze the assets of Falcon Capital Limited and First Guardian.

Following action by ASIC, Falcon Capital was placed into liquidation. Ross Blakeley and Paul Harlond of FTI Consulting were appointed as liquidators of Falcon Capital and were directed to wind up First Guardian. The liquidators issued an update report to unitholders and creditors of First Guardian on 2 December 2025: FTI Consulting.

Consumer information

ASIC has issued a consumer alert warning amid increasing concerns that people are being enticed to invest their retirement savings into complex and risky schemes: 25-120MR Consumer alert. Be super smart, visit ASIC’s Moneysmart campaign page.

If you have concerns about the financial advice you have received or about your superannuation trustee, you may wish to consider lodging a complaint with the Australian Financial Complaints Authority (AFCA). AFCA is the external dispute resolution scheme for financial complaints in Australia and must deal with complaints independently and fairly. AFCA’s service is free for consumers.

AFCA can be contacted by:

  • calling 1800 931 678 for free (9am – 5pm Melbourne time), or
  • lodging a complaint online on AFCA’s website.

Stay Updated: ASIC will post important updates about the First Guardian Master Fund on its dedicated webpage: First Guardian Master Fund.