Regulatory Alerts2025-12-18
ASIC sues Netwealth over First Guardian failures and secures $100 million compensation
The Australian Securities and Investments Commission has commenced Federal Court proceedings against Netwealth Superannuation Services and Netwealth Investments for contravening the Corporations Act by failing to adequately assess investment risks in the First Guardian Master Fund. Netwealth has admitted to these failures and accepted a court-enforceable undertaking to compensate more than 1,000 affected members for 100% of their invested amounts, excluding any withdrawals, by 30 January 2026. ASIC declined to seek pecuniary penalties due to the trustees' cooperation and the public interest in providing timely certainty to investors, marking the fourth enforcement action taken in relation to the First Guardian collapse.
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