The Australian Prudential Regulation Authority has accepted a Court Enforceable Undertaking from Netwealth Superannuation Services Pty Ltd, binding the platform trustee to a remediation programme after APRA identified material weaknesses in its investment governance framework. The undertaking, accepted on 18 December 2025 under section 262A of the Superannuation Industry (Supervision) Act 1993, follows findings from APRA's recent thematic review of the investment governance, strategic planning and member outcomes practices of superannuation trustees that offer platforms.
APRA identified three principal areas of governance concern at Netwealth. The regulator found deficiencies in the adequacy of the trustee's onboarding and monitoring of investment options, including its oversight, knowledge and due diligence of new investment options offered on its platform. The regulator also raised concerns about the management of conflicts of interest arising from services outsourced to connected entities, and raised concerns about the triggers and controls Netwealth relied on to monitor and review investment options and ensure performance or risk concerns were escalated and addressed appropriately.
FIRST GUARDIAN LOSSES DRIVE COMPENSATION OBLIGATION
Running alongside the APRA undertaking, the Australian Securities and Investments Commission commenced Federal Court proceedings against Netwealth for alleged contraventions of the Corporations Act related to members' investments in the First Guardian Master Fund. As part of its response to those proceedings, Netwealth agreed to compensate more than 1,000 affected members more than A$100 million, repaying 100% of the amounts invested less any withdrawals, for losses arising from First Guardian investments.
A Court Enforceable Undertaking can be enforced by a court if Netwealth fails to comply with its obligations.
REMEDIATION MILESTONES AND INDEPENDENT OVERSIGHT
Under the terms of the undertaking, Netwealth must engage an independent expert to conduct two separate structured reviews: one examining the high-risk investment options currently available on its platform, and a second assessing the overall adequacy of its investment governance framework. Based on the findings of those reviews, Netwealth must develop and implement a detailed uplift plan that addresses each area of identified weakness. It must not onboard new high-risk investment options onto its platform until the independent expert confirms that each new option has gone through the uplifted onboarding process.