18/12/2025

More than a thousand Australians caught up in the collapse of the First Guardian Master Fund will finally see their retirement savings restored, after superannuation platform Netwealth agreed to pay $100 million in compensation and admitted it failed its investors. The payment will return 100 per cent of affected members’ investments, less any withdrawals.

Shadow Minister for Financial Services Pat Conaghan said the outcome was welcome relief for thousands caught up in the biggest superannuation failure in Australia’s history.

“This is a great news for the over one thousand Australians who had invested their super through Netwealth,” Mr Conaghan said.

“Netwealth have admitted they failed their customers by offering the First Guardian scheme and have done the right thing by paying them back.”

Mr Conaghan noted this outcome followed Macquarie’s earlier agreement to compensate customers affected by the Shield Master Fund collapse, setting a clear expectation across the sector. “Macquarie has paid back its investors. Netwealth has now done the same,” he said.

“This would have to put pressure on the remaining superannuation platforms. Thousands more Australians are still facing years of court cases to see any compensation.”

Mr Conaghan said that while he has been a vocal critic of the Australian Securities and Investments Commission (ASIC) over its handling of the First Guardian and Shield collapses, this outcome deserved recognition.

“I’ve been clear where ASIC has fallen short, but I’ll also give credit where it’s due,” he said.

However, Mr Conaghan added that compensation after the fact doesn’t erase the failure that allowed the failures to occur. “Support for the victims is great – but they never should have been victims in the first place. There were warning signs years before First Guardian collapsed. Those warnings were ignored, and ordinary Australians paid the price,” he said.

Mr Conaghan said victims must come first but accountability must follow.

“Those who allowed this to happen must be held accountable, and that includes the Government.

“This is the biggest superannuation failure in Australia’s history. The Treasurer was warned at least seven times by his own department about problems with the regulation of managed investment schemes — schemes just like First Guardian — yet chose not to act.”

“Labor ignored the Sterling Income Trust review. Labor buried their own Managed Investment Scheme review. The Government should make that review public and explain why they didn’t act on any of the recommendations from either of these reviews.”

“Australians deserve to know their super is protected. They deserve to know how this happened, what ASIC and the Government knew, and why no action was taken sooner,” he said.

“We owe it to every Australian who entrusts their future to the superannuation system.”