Netwealth faces potential class action over First Guardian failure

Netwealth Group has received letters of potential class action, alleging it breached duties while offering and monitoring certain First Guardian investment options available through the Netwealth Superannuation Master Fund.

No proceedings have yet been filed.

Netwealth received the letter from solicitors acting for a proposed representative plaintiff together with draft court documents.

"The proposed claims relate to matters previously addressed through Netwealth's court-enforceable undertaking with ASIC and the compensation program completed in January 2026," Netwealth said.

Last week, Gordan Legal commenced a class action against Macquarie Investment Management, alleging the investors in the collapsed Shield Master Fund have not been fully compensated for losses affecting their retirement savings.

The proceedings have been brought on behalf of representative plaintiff Rachelle Dessent and approximately 2800 account holders who invested around $321 million in superannuation in Shield through Macquarie's superannuation platform.

Last year, Macquarie and Netwealth both acknowledged their due diligence failed and decided to compensate members in full for their losses.

Macquarie and Netwealth have both remediated members with $321 million and $101 million in losses respectively.

The Federal Court recently confirmed Netwealth Superannuation Services and Netwealth Investments contravened the Corporations Act in relation to the First Guardian Master Fund.

APRA has been working to uplift platform trustees' investment governance under a new consultation as part of minster for financial services Daniel Mulino's reform package unveiled in August.

"Superannuation trustees are a critical safeguard for Australians' retirement savings and must undertake rigorous due diligence before making investment options available to members," Court said.

"In this case, Netwealth admitted it failed to obtain sufficient information about First Guardian and failed to undertake sufficient enquiries to properly understand the risks associated with First Guardian.

"[The] outcome sends a clear message that superannuation trustees must put members first and take proactive steps to identify and respond to investment risks before members suffer harm."