Recent fallouts of the Shield and First Guardian schemes brought attention to the federal Treasury surrounding the use of outsourced trustees on wealth platforms. ASIC is currently suing Equity Trustees and Diversa for failing to do their due diligence or do enough to protect consumers within the aforementioned managed investment schemes. The failure and fraudulent funds exposed concerns about the operational separation between the trustee and the wealth platform’s daily operations as it reduced accountability. 
 

A wealth platform is essentially a one-stop shop offering an extensive range of investment options to clients such as managed funds, shares and bonds. These are typically utilised by financial advisers to select and build portfolios to wealthy superannuation clients. The trustee acts as the legal fiduciary and hold assets in trust for superannuation members, rather than the platform operator itself, commonly known as a “trustee-for-hire’ model. The trustee must ensure that the investment options offered on wealth platforms are suitable and are operate in the best interests of clients. 
 

As a result of the fallout, APRA has imposed additional licence conditions on Diversa. This means that they are required to appoint an independent expert to undertake separate reviews of it platforms investment menus and investment governance framework. They must develop an uplift plan to address identified gaps and undertake a further review of its investment menus against the enhanced investment governance requirements to determine ongoing suitability of certain investment options. Diversa must refrain from onboarding new high risk investment options to its platform without undergoing enhanced due diligence and oversight by an independent expert. 

Previously, ASIC has identified widespread poor practice of compliance plans developed for managed investment schemes. Such plans may be indicative of governance failings and risk exposing retail investors to harm. ASIC has outlined clear guidance on its expectations in compliance plans in its media release dated 2 June 2025 . It is worth noting that the Treasury has proposed responsible entities of registered managed investment schemes to have a majority of external directors and remove the option of having a mandatory compliance committee instead. ASIC has also proposed increasing the NTA requirements for responsible entities. A final position is expected to be communicated by 31 July 2026. 

It is more crucial than ever that trustees sufficiently review funds they are trustees of and conduct a holistic compliance health check on areas such as: 

• TMD/PDS reviews 

• Review of compliance plans 

• Enhanced due diligence on funds and monitoring operational aspects of funds management 

• Ensuring personnel continue to be fit and proper in their respective roles 

• Increased training 

May 2026