The Albanese Government welcomes the announcements by the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) today regarding action against Netwealth which will see Australians who lost money investing through Netwealth in the First Guardian Master Fund compensated and require Netwealth to improve their investment governance practices.
Netwealth's undertaking to ASIC will see over $100 million in compensation paid to more than 1,000 Australians who invested in the First Guardian Master Fund through Netwealth to fully compensate them for the amounts they invested, less any amounts withdrawn.
This will ease the significant stress these members have been under since the collapse of the First Guardian Master Fund and will see their superannuation savings restored by the end of January 2026.
I congratulate ASIC which also got a similar outcome with Macquarie Investment Management Ltd which saw investors receive 100 per cent the amounts they invested of in the Shield Master Fund, less any amounts withdrawn.
I also welcome the action taken by APRA today, that follows their thematic review of platform providers. This action includes the Court Enforceable Undertaking with Netwealth and additional licence conditions imposed on Equity Trustees Superannuation Limited (ETSL).
These actions will ensure prompt improvements to concerns identified by APRA, including investment governance practices.
I note Netwealth's decision to withdraw its application for assistance from the Government under the Part 23 of the Superannuation Industry (Supervision) Act 1993.
As Minister I continue to work closely with our regulators to ensure that Australians can feel confident in the superannuation system.
The work by these two regulators, which is continuing, will also ease pressure on the Compensation Scheme of Last Resort.
There are still many Australians who have lost funds through the collapses of the Shield and First Guardian Master Funds who are going through a distressing time.
It is again a reminder of the need to undertake reform to try to prevent these collapses in the future.
The Government will consult on options early next year and I encourage industry and individuals to take part in that important work.
