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Netwealth Group is set to complete its acquisition of AI-enabled advice workflow platform Paradino by the end of October. The deal, agreed in mid-September, involves a mix of cash and newly issued shares, with potential earn-out payments tied to performance targets. Paradino's Athena AI automates labour-intensive tasks like file notes, statements of advice, and client presentations. Netwealth plans to integrate this with its Unify data management platform to create what it calls a leading AI-enabled wealth management system. The acquisition targets Australia's adviser shortage, which worsened after regulatory reforms raised compliance standards whilst demand from retirees grew. Tools that let advisers serve more clients could help close this gap and drive growth in Netwealth's funds under administration. The company expects no material near-term earnings impact, as Paradino will run at a deficit whilst Netwealth invests in development. Netwealth shares have fallen to multi-year lows amid broader growth stock weakness and a class action involving subsidiaries.

Super class actions mount as Netwealth reveals it is in the firing line over First Guardian collapse. 21 September 2026 Photo: Netwealth via Facebook Wealth platform Netwealth Group (ASX: NWL) has disclosed that it may be facing a potential class action against its subsidiaries over alleged breaches of duties connected to collapsed First Guardian investment options on its superannuation platform. The company revealed today that solicitors acting for a proposed representative plaintiff are weighing up legal action against subsidiaries Netwealth Investments Limited and Netwealth Technologies Limited. The company today announced to the ASX that it has only received a letter from the unnamed solicitors and that no proceeding has yet been filed with any court. The proposed class action follows an announcement last week that Macquarie Group (ASX: MQG) has been issued a class action on behalf of 2,800 superannuation account holders who invested around $321 million in the collapsed Shield Master Fund, despite a compensation agreement being reached last year with the Australian Securities and Investments Commission (ASIC). Australia Business Directory Netwealth is in the same position with the class action being pursued despite the company compensating affected super fund investors to the tune of $101 million. The proposed claims relate to Netwealth's role as trustee and platform operator for superannuation members who were invested in First Guardian-managed options that froze redemptions in May 2024, leaving around 1,080 members with about $100.7 million in exposure. In total, some $128.5 million was invested in First Guardian products by 1,303 Netwealth super members. "The proposed claims relate to matters previously addressed through Netwealth's court-enforceable undertaking with ASIC and the compensation program completed in January 2026," says Newealth in a statement to the ASX today. "Netwealth is reviewing the proposed claim and will update the market as appropriate." The company completed a $101 million compensation program in January this year, paying more than 1,000 affected superannuation members. That payout hit Netwealth's bottom line hard, contributing to a $71 million net profit after tax impact from compensation payments. Just weeks before the class action threat emerged, the Federal Court in August 2026 handed down declarations confirming Netwealth contravened the Corporations Act by failing to act in the best interests of its super members and failing to prioritise members' interests when it continued to offer the First Guardian options on its platform. ASIC chair Sarah Court said at the time of the Federal Court declarations that the case "sends a strong message to all superannuation trustees about the importance of their obligations" and stressed that trustees "must always act in the best interests of their members and put their members' interests first." Netwealth chairman Michael Wachtel has previously positioned the matter as resolved, emphasising the company's proactive approach to remediation. The potential class action mirrors the trajectory of the separate but structurally similar matter involving Macquarie Group and the collapsed Shield Master Fund. In that case, Gordon Legal filed a class action in the Supreme Court of Victoria despite Macquarie having already paid out approximately $321 million to around 2,800 account holders through an ASIC-brokered compensation scheme. Gordon Legal partner James Naughton argued the ASIC-brokered outcome in the Macquarie matter left members "short-changed," contending the payout failed to account for foregone investment returns and personal distress suffered by affected investors. Lead Macquarie plaintiff Rachelle Dessent provided an emotional personal account of the financial distress caused by the fund's collapse, underscoring the human cost that class action proponents argue compensation programs alone do not address. Whether the proposed Netwealth class action will similarly seek damages beyond net capital losses, including foregone returns and non-economic loss, is not explicitly stated in the company's disclosure, but the Macquarie precedent strongly suggests that is the likely basis for any claim. The ASX announcement has not named the law firm or proposed plaintiff behind the potential Netwealth action, nor has it disclosed any quantum being sought. Managerial Training Business News Australia Join thousands of founders, investors and executives who read Business News Australia every morning. No paid subscriptions, just free. Unsubscribe anytime. Partner Content

Labor weighs ban on smart glasses in federal buildings. Legal Trouble Netwealth faces potential class action over First Guardian fallout. 3:58pm yesterday The news: Investment platform Netwealth is reviewing a potential class action lawsuit in relation to its offering and monitoring of certain First Guardian investment options. The context: Netwealth said it has received a letter from solicitors acting for a proposed representative plaintiff, together with draft court documents, alleging breaches of duties in connection with the First Guardian investment options. The options were available through Netwealth's superannuation master fund. The proposed claims relate to matters previously addressed through Netwealth's court-enforceable undertaking with ASIC and a compensation program completed in January. Netwealth agreed to pay over $100 million in compensation to more than 1,000 Australians who invested their superannuation in the collapsed First Guardian master fund. The company admitted it failed to obtain, and did not assess, sufficient information about First Guardian, or make sufficient independent enquiries to understand or evaluate the investment risk. No proceeding has been filed yet. Netwealth said it is reviewing the proposed claim. The source: ASX Let me know about Capital Brief updates and subscription offers. "I was born in China. I cannot change that fact," Zhang said in a letter to a US congressman after he accused rivals of "unhinged conspiratorial rants" about his background. Rose Mackenzie · 2:33am today Commonwealth Bank says its Discover card will bring greater competition. But some question whether the move is really aimed at swaying the RBA. Rose Mackenzie · 9:05pm yesterday The AI-native bank founded by two former Westpac executives, which has raised $140 million, has now fully migrated its first customer. But that's just the start of its ambitions. Rose Mackenzie · 19 September 2026 More in Law