Netwealth to pay $101m compensation for First Guardian fund collapse

Netwealth Group Limited will pay an estimated $101 million in compensation to members of its Superannuation Master Fund who incurred losses from the First Guardian Master Fund collapse. These payments will be credited to members' super accounts by January 30, 2026. The compensation will be recorded as an extraordinary expense in Netwealth's 1H26 accounts, impacting net profit after tax by approximately $71 million, and will be funded through cash and debt.

The decision to compensate follows Netwealth reaching an agreement with ASIC, which concluded its investigation into the Netwealth group. Netwealth Investment Limited (NIL) and Netwealth Superannuation Services Pty Limited (NSS) will admit to contraventions of the Corporations Act. NSS has also agreed to an enforceable undertaking with APRA to enhance its investment governance processes.

Netwealth chairman Michael Wachtel emphasized the company's commitment to timely remediation for affected members. CEO Matt Heine acknowledged the distress caused by the collapse and stated that the agreed outcome allows the company to move forward.