Netwealth asks govt for financial assistance after First Guardian collapse
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The news: Investment platform Netwealth has asked the federal government for financial assistance after 1,088 of its members were impacted by the collapse of the First Guardian Master Fund last year.
The numbers: Netwealth has submitted an application to the Minister for Financial Services Daniel Mulino for financial assistance after its clients lost a combined $101 million as a result of the collapse.
The context: Netwealth said it considers First Guardian's fund manager Falcon Capital to have engaged in fraudulent conduct resulting in losses to the Netwealth Superannuation Master Fund.
The company's request for financial assistance under Part 23 of the Superannuation Industry Act seeks to restore members to their position prior to the fraud occurring.
Part 23 applications may be approved by the minister where the fund suffered loss from fraudulent conduct or theft, and the loss substantially reduced the fund causing difficulties paying benefits.
Falcon Capital has since been placed into liquidation and investigations by the Australian Securities and Investments Commission (ASIC) are ongoing.
What they said: "While acknowledging that work by liquidators and ASIC is ongoing, Netwealth believes sufficient evidence exists to establish that losses arose from fraud and that Part 23 requirements have been met," the company said this morning.
The source: ASX
