Superannuation Trustees
Superannuation trustees occupy one of the most important gatekeeping roles in Australia’s retirement system. Their responsibility is to assess investment options before making them available to members and to continue monitoring those investments over time.
Following the collapse of the First Guardian and Shield Master Funds, ASIC has commenced civil penalty proceedings against multiple trustees, alleging they failed to meet those obligations. ASIC is seeking compensation for affected members, declarations from the Court and civil penalties. The allegations remain before the Federal Court and have not yet been determined.
Comparison of Trustee Responses
| Trustee | Estimated Investor Exposure | ASIC Action | Trustee Response |
|---|---|---|---|
| Diversa Trustees | $300 million | Civil penalty proceedings | Defending proceedings; applied for Part 23 financial assistance. |
| Equity Trustees (Shield) | $160 million | Civil penalty proceedings | Defending proceedings. |
| Equity Trustees (First Guardian/NQ Super) | $65 million | Civil penalty proceedings | Defending proceedings. |
| Macquarie | $321 million | Federal Court proceedings | Cooperated with ASIC and repaid members before judgment; no civil penalties sought. |
| Netwealth | $100 million | Enforceable undertaking | Admitted failures and compensated members in full (less withdrawals). |
This comparison clearly demonstrates the different approaches taken by trustees. While Macquarie and Netwealth accepted responsibility for deficiencies in their processes and prioritised restoring members’ capital, Diversa and Equity Trustees are defending ASIC’s allegations in the Federal Court, where the claims remain to be determined.
Diversa Trustees Limited
First Guardian Master Fund
Investor Exposure
Approximately $300 million of superannuation savings was invested into the First Guardian Master Fund between 2020 and 2024 through superannuation funds for which Diversa acted as trustee. Thousands of investors have suffered substantial losses following the collapse of the fund.
ASIC’s Allegations
ASIC alleges Diversa failed to:
- Conduct adequate due diligence before making First Guardian available to members.
- Conduct adequate ongoing monitoring of the investment.
- Enforce its own internal 50% investment concentration limit.
- Maintain adequate systems and controls to ensure compliance with that limit.
- Exercise the level of care, skill and diligence expected of a prudent superannuation trustee.
- Act in members’ best financial interests.
- Ensure financial services were provided efficiently, honestly and fairly.
Diversa’s Position
Diversa has lodged a defence and has indicated it will vigorously defend ASIC’s proceedings. The trustee has consistently stated that it believes the losses resulted from alleged fraudulent conduct by First Guardian’s trustee and directors rather than any failure on its own part.
Diversa has also:
- Applied to the Federal Government for financial assistance under Part 23 of the Superannuation Industry (Supervision) Act, arguing the losses resulted from alleged fraud.
- Continued working with ASIC, the liquidators and Government while the proceedings continue.
- Advised members that any financial assistance received would be applied for their benefit.
Equity Trustees Superannuation Limited
Shield Master Fund
Investor Exposure
Approximately $160 million of retirement savings was invested into the Shield Master Fund through superannuation funds for which Equity Trustees acted as trustee during 2023 and 2024. Thousands of members were exposed before the fund collapsed.
ASIC’s Allegations
ASIC alleges Equity Trustees failed to:
- Undertake adequate due diligence before allowing Shield onto its platform.
- Properly assess the risks associated with a new investment that had little or no track record.
- Exercise the care, skill and diligence expected of a prudent superannuation trustee.
- Act in the best financial interests of members.
- Ensure financial services were provided efficiently, honestly and fairly.
Equity Trustees’ Position
Equity Trustees has publicly stated it intends to defend ASIC’s proceedings. The company has maintained that investors were victims of alleged misconduct by others involved in the operation of the fund and has stated it supports ASIC’s broader investigations into those responsible.
Equity Trustees Superannuation Limited
First Guardian (NQ Super)
Investor Exposure
ASIC has also commenced a separate proceeding against Equity Trustees relating to the First Guardian Master Fund.
According to ASIC, more than $65 million was invested into First Guardian between June 2023 and March 2024 by approximately 2,700 members of the NQ Super & Pension division of the AMG Superannuation Fund.
ASIC’s Allegations
ASIC alleges Equity Trustees:
- Approved First Guardian without obtaining key documents, including its constitution, audited financial statements and compliance plan audit.
- Allowed members to invest up to 100% of their retirement savings into First Guardian despite evidence it was, or may have been, illiquid.
- Failed to exercise appropriate care, skill and diligence.
- Failed to act in members’ best financial interests.
- Failed to ensure financial services were provided efficiently, honestly and fairly.
Equity Trustees’ Position
Equity Trustees has indicated it will defend the proceedings. ASIC is seeking compensation for affected members, declarations and civil penalties. The matter is currently before the Federal Court and no findings have yet been made.
Why Court Action Matter
The proceedings against Diversa and Equity Trustees represent some of the most significant actions ever brought by ASIC against superannuation trustees. The cases will help determine the standard of due diligence, monitoring and oversight expected of trustees when approving investment options for Australians’ retirement savings.
For thousands of affected investors, the outcome may influence both future compensation and the responsibilities trustees owe to members across the entire superannuation industry.
Macquarie Investment Management Limited (MIML)
Shield Master Fund
Investor Exposure
Approximately $321 million of superannuation savings was invested into the Shield Master Fund through the Macquarie Superannuation Plan and Macquarie Wrap platform on behalf of approximately 3,000 members.
Following ASIC’s investigation, Macquarie agreed to repay 100% of members’ original investments, less any amounts already withdrawn. This represented one of the largest voluntary compensation outcomes ever achieved by ASIC for superannuation investors.
ASIC’s Allegations
ASIC alleged Macquarie failed to:
- Conduct adequate due diligence before making Shield available as an investment option.
- Adequately monitor the investment after it was approved.
- Exercise the care, skill and diligence expected of a prudent superannuation trustee.
- Ensure financial services were provided efficiently, honestly and fairly.
ASIC commenced Federal Court proceedings against Macquarie seeking declarations regarding these failures.
Macquarie’s Position
Unlike the other trustee proceedings, Macquarie:
- Cooperated extensively with ASIC throughout the investigation.
- Agreed to compensate approximately 3,000 members before the Court determined liability.
- Implemented governance and oversight improvements.
- Entered into an agreed outcome with ASIC without requiring investors to wait years for litigation to conclude.
In February 2026, the Federal Court declared that Macquarie had contravened the Corporations Act. However, ASIC did not seek civil penalties, citing the exceptional circumstances, including Macquarie’s cooperation and its decision to fully compensate affected investors.
Netwealth Superannuation Services Pty Ltd
First Guardian Master Fund
Investor Exposure
More than 1,000 members invested approximately $100 million into the First Guardian Master Fund through the Netwealth Superannuation Master Fund.
Following ASIC’s investigation, Netwealth agreed to compensate members by repaying 100% of the amounts invested, less any withdrawals. Compensation was completed under a court-enforceable undertaking.
ASIC’s Allegations
ASIC alleged Netwealth failed to:
- Obtain sufficient information before approving First Guardian as an investment option.
- Properly assess the investment risks associated with First Guardian.
- Make sufficient independent enquiries regarding the underlying investment.
- Exercise the care, skill and diligence expected of a prudent superannuation trustee.
- Ensure financial services were provided efficiently, honestly and fairly.
Unlike Diversa and Equity Trustees, these matters were resolved through an enforceable undertaking rather than contested civil penalty litigation.
Netwealth’s Position
Netwealth acknowledged shortcomings in its onboarding and oversight processes and:
- Admitted it had failed to obtain sufficient information before making First Guardian available.
- Entered into a court-enforceable undertaking with ASIC.
- Agreed to compensate affected members in full for their original investments, less withdrawals.
- Introduced enhanced governance and due diligence processes designed to strengthen future investment approvals.
ASIC described the agreement as an important outcome that restored investors to the position they were in before their retirement savings were invested into First Guardian.