APRA Accepts CEU from Netwealth to Strengthen Investment Governance
The Australian Prudential Regulation Authority (APRA) has accepted a court enforceable undertaking (CEU) from Netwealth Superannuation Services Pty Ltd (Netwealth) aimed at addressing significant gaps in its investment governance framework and practices.
Netwealth serves roughly 115,000 member accounts and oversees more than $40 billion in funds under management.
This step follows APRA’s recent thematic review of investment governance, strategic planning, and member outcomes among superannuation trustees offering platform services. The review uncovered weaknesses in Netwealth’s onboarding due diligence, ongoing monitoring of investment options, management of outsourced investment services, and handling of related conflicts of interest.
Key concerns highlighted by APRA include:
- Insufficient oversight, knowledge, and due diligence for new investment options added to Netwealth’s platform
- Inadequate triggers and controls to monitor, review, and escalate any performance or risk issues with investment options
- Flawed management of potential conflicts of interest arising from outsourcing to Netwealth Investments (a related party) and other third parties involved in platform investment options
Although Netwealth has implemented, and continues to progress, improvements to its investment governance, APRA remains unsettled by the deficiencies identified in the review. The regulator requires assurance—provided under independent expert oversight—that Netwealth will implement the necessary enhancements to ensure its investment governance framework protects members’ interests and remains fit for purpose.
Netwealth has acknowledged APRA’s concerns under the CEU and committed to:
- Engage an independent expert to review high-risk investment options on its platform, ensuring their continued inclusion remains in members’ best financial interests and addressing any related findings
- Engage an independent expert to conduct a comprehensive review of its investment governance framework (Framework Review)
- Develop and implement a remediation uplift plan to fix deficiencies or incorporate improvements identified through the Framework Review, with APRA receiving assurance that actions have been completed
- Reassess all investment options on its menu against enhanced governance requirements, including stronger onboarding and monitoring criteria, to determine ongoing suitability
As part of the undertaking, Netwealth must also refrain from onboarding certain new high-risk investment options until the independent expert confirms that the new options have undergone the uplifted onboarding process and provides an attestation that all reasonable steps were taken to ensure alignment with members’ best financial interests.
In parallel, the Australian Securities and Investments Commission (ASIC) has begun proceedings against Netwealth for alleged contraventions of the Corporations Act 2001 and has also accepted a CEU to ensure members receive 100% of their invested amounts in First Guardian, after any withdrawals. APRA and ASIC have coordinated their regulatory responses to secure strong, member-centric outcomes while maintaining their distinct mandates over superannuation trustees.
APRA’s CEU follows its public letter dated 7 October 2025, which urged trustees to escalate and accelerate efforts to protect investments held in platform products.
Deputy Chair Margaret Cole emphasized that robust investment governance—especially around onboarding and monitoring platform investment options—is essential to safeguard members’ interests. She noted APRA’s determined focus on platform-related investment governance through 2026.
The CEU is documented in APRA’s List of enforceable undertakings.
Footnotes
1 Netwealth primarily outsources the operation of the Netwealth Superannuation Master Fund to Netwealth Investments, a related entity. Netwealth Investments acts as platform provider, administrator, and custodian of the Fund.
2 Netwealth has agreed not to onboard new Platform Investment Options (excluding certain listed Excluded Platform Investment Options) prior to meeting the enhanced onboarding requirements outlined in the CEU.
