ASIC Enforcement Wrap: December 2025

Key December Takeaways:

• ASIC’s investigation into the First Guardian Master Fund leads to proceedings against Netwealth and Diversa
• In the largest combined penalties ASIC has secured against a single entity, Australia and New Zealand Banking Group Limited (ANZ) has been ordered by the Federal Court to pay $250 million
• ASIC issued infringement notices totalling $2,263,800 to 12 large proprietary companies, including Frank Green Holdings Pty Ltd, Harris Scarfe Pty Ltd, and Grill’d Pty Ltd, for allegedly failing to lodge their FY24 audited financial reports on time

Spotlight – Netwealth agrees to fully compensate members who invested their superannuation in the First Guardian Master Fund

ASIC commenced proceedings in the Federal Court against Netwealth Superannuation Services Pty Ltd (NSS) and Netwealth Investments Limited (NIL) as trustees of the Netwealth Superannuation Master Fund (NSMF) in relation to the First Guardian Master Fund, seeking declarations that NSS and NIL contravened sections 912A(1)(a) and 912A(5A) of the Corporations Act.

NSMF is a public offer retail superannuation fund with around 115,000 member accounts. Through its Super Accelerator Plus superannuation product, the First Guardian Growth and Diversified investment options were made available to adviser-led members on 26 March 2021.

On 28 December 2022, the First Guardian investment options were closed to new investments. When the responsible entity of the First Guardian Master Fund  froze redemptions in May 2024, 1,084 members were invested in First Guardian, totalling approximately $100.6 million.

NSS and NIL admitted that they failed to obtain sufficient information about First Guardian or failed to make sufficient inquiries to understand and evaluate the investment risks of the Diversified and Growth investment options prior to offering them as investment options to NSMF members. 

NSS and NIL have admitted all allegations in the proceedings, and the Court will now consider if the declarations are appropriate. ASIC is not seeking pecuniary penalties due to the exceptional circumstances of the matter, such as strong public interest in obtaining a timely outcome.

Nor are ASIC seeking compensation orders – rather it has accepted a court-enforceable undertaking from NSS and NIL to compensate more than 1,000 members 100% of the amounts they invested in First Guardian. The compensation payments will be made by 30 January 2026.

The proceedings against Netwealth continue ASIC’s action against superannuation trustees in relation to the ongoing First Guardian and Shield Master Fund investigations.

December in Summary – Enforcement Actions and Outcomes

Civil Action

Civil Proceedings Commenced

ASIC commenced three civil proceedings in the Federal Court:

• ASIC commenced civil penalty proceedings in the Federal Court against Diversa Trustees Limited for alleged failures concerning the First Guardian Master Fund. Between 2020 and 2024, around $300 million was invested into First Guardian through superannuation funds of which Diversa was the trustee. ASIC alleges that Diversa failed to conduct adequate due diligence prior to allowing its members to invest, and allegedly failed to complete adequate monitoring.
• ASIC commenced proceedings in the Federal Court against Spice Capital Partners Pty Ltd (Spice Capital) and its Chief Executive Officer, Colin Oxlade. It is alleged that Spice Capital and Mr Oxlade have carried on an unlicensed financial services business and provided unlicensed financial product advice to investors. ASIC is seeking to restrain Spice Capital and Mr Oxlade from carrying on a financial services business without an Australian Financial Services Licence.
• ASIC commenced civil penalty proceedings in the Federal Court against BDO Audit (WA) Pty Ltd (BDO Audit) and its director Dean Just for allegedly false or misleading audit reports. BDO Audit was the audit company for a tech company and Mr Just was the lead auditor at the time of the alleged contraventions. ASIC alleges that BDO Audit and Mr Just failed to take reasonable steps to ensure that audit reports lodged with ASIC for the FY20, FY21 and FY22 were not materially false or misleading.

Civil Proceedings Ongoing

• Macquarie Securities (Australia) Limited (MSAL) and ASIC will ask the Supreme Court of New South Wales to impose a $35 million penalty against MSAL and are seeking additional other orders in relation to misleading conduct. MSAL has admitted it failed to correctly report at least 73 million short sales between December 2009 and February 2025. It is estimated that this number is actually between 298 million and 1.5 billion short sales. The inaccurate reporting was reportedly due to multiple failures by its systems and processes. The penalty and other orders are subject to approval from the Court.

Civil Penalties

The Federal Court ordered $251,440,000 in civil penalties against five companies:

• Australia and New Zealand Banking Group Limited (ANZ) has been ordered by the Federal Court to pay $250 million in the largest combined penalties ASIC has secured against a single entity. The penalties are in relation to four separate proceedings against ANZ. The Court ordered that ANZ pay a combined $135 million penalty for misconduct relating to the management of a $14 billion government bond deal, a $40 million penalty for failing to respond to hundreds of customer hardship notices, a $40 million penalty for making false and misleading statements about savings interest rates, and a $35 million penalty for failing to refund fees charged to thousands of dead customers.
• Green County Pty Ltd, a business lender, and Max Funding Pty Ltd, its loan introducer, have been ordered by the Federal Court to pay penalties of $405,000 and $110,000 respectively. Green County was fined for engaging in unlicensed credit activity and breaching consumer protection provisions. Max Funding was fined for engaging in unlicensed credit activity. The penalties follow four business loans provided by Green County to two consumers. Neither Green County nor Max Funding hold an Australian Credit Licence to engage in consumer lending.
• RM Capital Pty Ltd and its authorised representative The SMSF Club Pty Ltd have been ordered by the Federal Court to pay penalties of $575,000 and $350,000 respectively for conflicted remuneration breaches. The Court previously found that RM Capital failed to take reasonable steps to ensure that SMSF Club did not accept conflicted remuneration, and that SMSF Club accepted conflicted remuneration on multiple occasions.

Other Civil Actions

The Federal Court made orders in two cases:

• The Federal Court made orders appointing Robert Woods and Salvatore Algeri, of Deloitte SRT Pty Ltd, as receivers to the property of Gregory Raymond Cotton and First Mutual Private Equity Pty Ltd (First Mutual). The Receivers will identify and secure the property, determine the amount of investor funds received, identify the uses of the funds, and provide a report to the Court.
• The Federal Court has ordered blockchain mining companies NGS Group Limited, NGS Crypto Pty Ltd and NGS Digital Pty Ltd be permanently restrained from operating a financial services business and be wound up with liquidators appointed. The Court found that the companies operated a financial services business without an Australian Financial Services Licence (AFSL). Over a 6-year period, approximately $59 million was invested with NGS Group, with many investing their retirement savings via self-managed superannuation funds. Anthony Connelly, Katherine Sozou, and William James Harris of McGrathNicol were appointed as liquidators of the companies.

Criminal Action

Sentencing

Five individuals were sentenced following guilty pleas:

• Behzad Eghrari was sentenced in the County Court of Victoria to 15 months imprisonment following his guilty plea of three market manipulation charges. Mr Eghrari admitted to executing hundreds of trades between four of his share trading accounts which created a false or misleading appearance of active trading in the market. Mr Eghrari will be released upon entering a recognisance to be of good behaviour for a period of 2 years.
• Larisa Quinlan, Kurt Stuart, Emma Summer and Syed Yusef have been sentenced to terms of imprisonment at the Sydney District Court after pleading guilty to conspiracy to commit market rigging and dealing with the proceedings of crime. The four individuals used Telegram app group chats to pump up share prices of Australian stocks before dumping the stocks at inflated prices. Each individual was sentenced to a term of imprisonment to be served by way of an intensive correction order between 14 months and 2 years, with some additional conditions including community service placed on each person.

Appeals

One individual had their appeal heard:

• Geoffrey Thomas Parker, the former Chief Executive Officer of Bruck Textile Technologies Pty Ltd, has had his criminal conviction overturned following an appeal to the Victorian Court of Appeal. Mr Parker had been convicted of preventing the recovery of employee entitlements contrary to the Corporations Act. The appeal followed the Court’s previous case stated judgment on questions of law in relation to the interpretation of the offence legislation.

Administrative Action

Bans

Two individuals were banned by ASIC from providing credit activities or financial services:

• Thi Hoa Trieu has been banned by ASIC effective 8 December 2025 from engaging in credit activities, controlling another person who engages in credit activities, and performing any function involved in credit activities for a period of ten years. ASIC found that Ms Trieu contravened credit legislation by making false or misleading statements, is not a fit and proper person to participate in the credit industry and is likely to contravene credit legislation in the future. Ms Trieu also had her Australian Credit Licence (ACL) cancelled.
• Louis Van Coppenhagen has been banned by ASIC effective 16 December 2025 from providing financial services, controlling an entity that carries on a financial services business, or carrying on a financial services business for 7 years. ASIC found that Mr Van Coppenhagen provided inappropriate advice to certain clients that was not in their best interests. ASIC believes that Mr Van Coppenhagen is not a fit and proper person, is not competent and is likely to contravene a financial services law.

Licence Suspension or Cancellation

Two companies had their Australian Financial Services Licence (AFSL) suspended or cancelled:

• MW Planning Pty Ltd had their AFSL suspended by ASIC until 8 June 2026. ASIC believes that MW Planning currently does not meet its organisational competence and human resources obligations by failing to appoint a new responsible manager following ASIC’s banning of its existing responsible manager, Robert John Tohill.
• Rynco Pty Ltd had their AFSL cancelled by ASIC for its ongoing non-compliance. ASIC found that Rynco has not maintained competence to provide financial services, does not have adequate resources to provide financial services, and has failed to prepare and lodge annual accounts.

Infringement Notices

ASIC issued infringement notices to twelve companies:

• ASIC issued infringement notices to 12 large proprietary companies for allegedly failing to lodge their FY24 audited financial reports on time. All 12 companies, which each had an infringement notice issued of at least $187,800, paid the notice in full. The companies include Frank Green Holdings Pty Ltd, Harris Scarfe Pty Ltd, and Grill’d Pty Ltd.

Interim Stop Orders

ASIC issued one interim stop order:

• ASIC issued an interim stop order, valid for 21 days, against Stratos Trading Pty Limited (trading as FXCM) from issuing contracts for difference (CFDs) to retail clients. ASIC was concerned FXCM’s target market determination inappropriately included certain investors in its target market. The risks associated with FXCM’s CFDs make them likely unsuitable for investors with a ‘medium risk appetite’.

Other Enforcement Actions: 

• The Companies Auditors Disciplinary Board (CADB) has cancelled the registration of auditor Sam Danieli, director of A D Danieli Audit Pty Ltd, following an application by ASIC, effective 16 December 2025. The CADB found that Mr Danieli repeatedly breached his duties as a company auditor and that he knew or ought to have known what was required of him. Mr Danieli has applied to the Administrative Review Tribunal for a stay and review of the decision.

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If any of the above is relevant to you or you want to know more, please feel free to get in touch.

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The contents of this article do not constitute legal advice and it is not intended to be a substitute for legal advice and should not be relied upon as such.  It is designed and intended as general information in summary form, current at the time of publication, for general informational purposes only.  You should seek legal advice or other professional advice in relation to any particular legal matters you or your organisation may have.

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