The Australian Securities & Investments Commission (ASIC) has commenced civil penalty proceedings in the Federal Court against Diversa Trustees Limited, alleging failures in connection with superannuation members’ investments in the First Guardian Master Fund. The case centres on alleged deficiencies in due diligence and ongoing monitoring, and an alleged failure to enforce a 50% holding limit Diversa imposed for First Guardian, including a lack of systems and processes to ensure compliance with that limit. Around AUD 300 million was invested into First Guardian from 2020 to 2024 through superannuation funds for which Diversa was trustee, and ASIC alleges contraventions of sections 52 and 54B of the Superannuation Industry (Supervision) Act 1993 and section 912A of the Corporations Act 2001. ASIC is seeking compensation orders, declarations and civil penalties, and linked the proceedings to its broader enforcement response to the Shield and First Guardian collapses, with 11 cases underway in the Federal Court against 19 defendants; ASIC and the Australian Prudential Regulation Authority continue to work together on accountability for trustees of relevant APRA-regulated super funds.
Australian Securities & Investments Commission 2025-12-09
Australian Securities & Investments Commission sues Diversa Trustees over alleged superannuation trustee failures linked to First Guardian Master Fund
ASIC has initiated civil penalty proceedings against Diversa Trustees Limited in the Federal Court over superannuation investments in the First Guardian Master Fund. Alleged failures include due diligence, monitoring, and a 50% holding limit breach, violating the Superannuation Industry (Supervision) Act 1993 and the Corporations Act 2001. ASIC seeks compensation, declarations, and penalties, linking the case to broader enforcement efforts concerning the Shield and First Guardian collapses, with ongoing collaboration with the Australian Prudential Regulation Authority.