The Australian Securities and Investments Commission (ASIC) has commenced Federal Court proceedings against Netwealth Superannuation Services Pty Ltd and Netwealth Investments Limited, as trustees of the Netwealth Superannuation Master Fund, after they admitted contravening the Corporations Act in connection with offering First Guardian Master Fund investment options. ASIC has also accepted a court-enforceable undertaking under which Netwealth will pay over AUD 100 million to compensate more than 1,000 affected members. The admitted conduct relates to failing to obtain and assess sufficient information, and failing to make sufficient independent enquiries, to understand or evaluate the investment risk of the First Guardian Diversified Class and Growth Class before and while offering them on the Netwealth Superannuation Master Fund platform. ASIC will seek declarations that the trustees failed to do all things necessary to ensure financial services were provided efficiently, honestly and fairly, and that they contravened sections 912A(1)(a) and 912A(5A) of the Corporations Act; it will not seek a pecuniary penalty, citing exceptional circumstances including the agreed 100% compensation outcome and the aim of a timely court-based resolution. Compensation is to restore members to 100% of the amounts invested in First Guardian less any amounts withdrawn, with payments due by 30 January 2026. ASIC noted that between 26 March 2021 and 28 December 2022 around AUD 128.5 million was invested across the two classes by 1,303 members, and that 1,084 members remained invested when redemptions were frozen in May 2024 with investments totalling about AUD 100.6 million; it also referenced APRA accepting a court-enforceable undertaking from Netwealth Superannuation Services on 17 December 2025 to uplift investment governance processes.

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