The Australian Prudential Regulation Authority (APRA) has accepted a court enforceable undertaking from Netwealth Superannuation Services Pty Ltd, a platform trustee with around 115,000 member accounts and more than AUD 40 billion in funds under management, after identifying material weaknesses in its investment governance framework and practices. APRA’s action follows a thematic review of platform superannuation trustees that found deficiencies in Netwealth’s onboarding due diligence and monitoring of investment options, and in its management of outsourced investment services and related conflicts of interest. The undertaking requires Netwealth to appoint an independent expert to review high-risk investment options on its platform menu and to conduct a broader review of the investment governance framework, then develop and implement a remediation uplift plan and provide APRA with assurance that actions are implemented, and reassess all investment options against uplifted onboarding and monitoring requirements; Netwealth must also refrain from onboarding certain new high-risk platform investment options (with limited exceptions) until the independent expert confirms the enhanced onboarding process has been followed and an attestation is provided that reasonable steps were taken to ensure the option is in members’ best financial interests. In parallel, the Australian Securities and Investments Commission has commenced proceedings against Netwealth for alleged contraventions of the Corporations Act 2001 and accepted a court-enforceable undertaking aimed at ensuring members are paid 100 per cent of the amounts they invested in First Guardian less any amounts withdrawn. APRA referenced its public letter of 7 October 2025 to platform trustees and indicated it will maintain a strong focus on investment governance in the platform segment throughout 2026.
Australian Prudential Regulation Authority 2025-12-18
Australian Prudential Regulation Authority accepts court-enforceable undertaking from Netwealth to fix platform investment governance and restrict onboarding of new high-risk options
APRA accepted a court enforceable undertaking from Netwealth Superannuation Services Pty Ltd due to weaknesses in its investment governance. A review found deficiencies in onboarding, monitoring investments, and managing outsourced services. The undertaking requires an independent review of high-risk investments and governance, with a remediation plan. Meanwhile, ASIC has initiated proceedings against Netwealth for alleged Corporations Act violations, ensuring member reimbursements for First Guardian investments. APRA will focus on investment governance in the platform segment into 2026.