The Australian Securities and Investments Commission has secured Federal Court declarations that Netwealth Superannuation Services and Netwealth Investments breached the Corporations Act in connection with the First Guardian Master Fund. Netwealth failed to obtain and assess sufficient information, make adequate independent inquiries into investment risks before and during the fund’s availability to members, and disclose its potential illiquidity. The proceedings followed a court-enforceable undertaking under which Netwealth compensated affected members for their net investments. More than AUD 100 million was paid to over 1,000 investors in January 2026. ASIC did not seek a financial penalty because of the case’s particular circumstances, including the timely compensation. ASIC has 14 cases underway against 31 defendants and continues to investigate alleged misconduct involving the First Guardian and Shield master funds.
2026-08-20Australian Securities & Investments Commission
Australian Securities and Investments Commission secures court declarations against Netwealth over First Guardian failures
The Australian Securities and Investments Commission has secured Federal Court declarations that Netwealth breached the Corporations Act through inadequate due diligence and disclosure relating to the First Guardian Master Fund. Netwealth paid more than AUD 100 million to over 1,000 affected investors in January 2026, and ASIC did not seek a financial penalty.