ASX-listed financial firm Netwealth has agreed to repay a total of $100 million to customers affected by the collapse of First Guardian, which left thousands of Australians without their retirement savings.
The company has reached an agreement with the Australian Securities and Investments Commission (ASIC) to refund 100 per cent of the amount invested in First Guardian, less any funds already withdrawn, to 1000 members.
Netwealth admitted to ASIC that it failed to properly understand or assess the financial risks before offering First Guardian as an investment option to clients.
Affected customers are expected to be reimbursed by January 30.
The Australian Prudential Regulation Authority (APRA) has also imposed a number of licence conditions on Netwealth, including a requirement to engage an independent expert to review its handling of high-risk investment options.
“Robust investment governance, including in relation to onboarding and monitoring of platform investment options, is critical to safeguard the interests of members,” APRA Deputy Chair Margaret Cole said.
“APRA will maintain a strong focus on investment governance, particularly in the platform segment, throughout 2026.”
ASIC said it would not pursue a pecuniary penalty against Netwealth due to what it described as exceptional circumstances, citing the company’s level of cooperation.
The regulator said this decision was based on Netwealth acting “without waiting for an outcome of the First Guardian liquidation or proceedings against other parties involved”.
ASIC Deputy Chair Sarah Court described the agreement as a “welcome outcome” for Australians impacted by the collapse.
“More than 1000 members who invested through Netwealth’s superannuation platform were facing huge uncertainty when First Guardian collapsed,” Court said in a statement.
“ASIC’s investigation will ensure Netwealth restores these members to the position they were in before they saw their savings eroded.”
Court said the action marked ASIC’s fourth enforcement step against a trustee following the collapses of First Guardian and Shield.
ASIC has previously commenced Federal Court proceedings against Netwealth Superannuation Services Pty Ltd and Netwealth Investments Limited, the trustees of the Netwealth Superannuation Master Fund.
The regulator is also investigating First Guardian and the Shield Master Fund.
Keystone Asset Management Ltd, the responsible entity of the Shield Master Fund, is now in liquidation.
ASIC also began investigating First Guardian’s responsible entity Falcon Capital, First Guardian itself, and director David Anderson in late 2024.
In total, around 12,000 Australians lost an estimated $1.1 billion in the dual superannuation collapses.
Earlier this year, Macquarie Investment Management Ltd, a subsidiary of Macquarie investment bank, confirmed its investors would be reimbursed 100 per cent of their funds by September 30.
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