The Australian Prudential Regulation Authority has accepted a court-enforceable undertaking from Netwealth Superannuation Services Pty Ltd requiring it to address material weaknesses in its investment governance framework and practices for its superannuation platform, including independent expert oversight and tighter controls over onboarding and monitoring of investment options. APRA’s thematic review of platform trustees found deficiencies in Netwealth’s due diligence and oversight of new investment options, the triggers and controls used to monitor options and escalate performance or risk concerns, and the management of conflicts of interest linked to outsourced investment services, including arrangements with related party Netwealth Investments and other third parties. Under the undertaking, Netwealth must appoint an independent expert to review high-risk investment options for continued inclusion on the menu, conduct an investment governance framework review, implement a remediation uplift plan and provide APRA assurance that actions have been completed, and reassess all investment menu options against uplifted onboarding and monitoring requirements. Netwealth has around 115,000 member accounts and over 40 billion in funds under management. Netwealth must also refrain from onboarding certain new high-risk platform investment options until the independent expert confirms the uplifted onboarding process has been applied and an attestation is provided that reasonable steps were taken to ensure the new option is in members’ best financial interests. In parallel, the Australian Securities and Investments Commission has commenced Corporations Act 2001 proceedings and accepted a separate enforceable undertaking focused on ensuring members are paid 100 per cent of amounts invested in First Guardian less any amounts withdrawn, with APRA noting coordinated regulatory action and pointing to its 7 October 2025 letter urging trustees to accelerate safeguards for platform-held member investments.
Australian Prudential Regulation Authority 2025-12-18
Australian Prudential Regulation Authority accepts court-enforceable undertaking from Netwealth to remediate platform investment governance weaknesses and restrict new high-risk options
The Australian Prudential Regulation Authority (APRA) accepted a court-enforceable undertaking from Netwealth Superannuation Services Pty Ltd to address weaknesses in its investment governance framework, requiring independent expert oversight and enhanced controls. Concurrently, the Australian Securities and Investments Commission initiated proceedings under the Corporations Act 2001, with both regulators coordinating actions to safeguard member investments.