Fiducian says its investment governance framework avoided high-risk products Shield and First Guardian from creeping onto its platform, knocking back concerns from APRA which added license restrictions to the group’s super trustee.
APRA announced on Wednesday in a press statement that it was adding the license requirements to address concerns relating to Fiducian’s governance processes, including oversight of platform investment options made available to members, and its board’s effectiveness in discharging its duties and obligations.
Fiducian must refrain from onboarding certain new high-risk investment options to its platform until an independent expert confirms the option has gone through an adequate onboarding process and an accountable person attests that all reasonable steps were taken to ensure the option is in members’ best financial interests.
But Fiducian said in a statement that it “can confirm that our processes have avoided high-risk products such as, Shield Master Fund and First Guardian Master Fund”.
The additional licensee conditions follows APRA’s thematic review of platform investment governance last year launched in the wake of the $1 billion Shield and First Guardian collapse, which has seen licensee conditions added to Netwealth, Equity Trustees and Diversa Trustees.
The regulator said the review also identified concerns about a lack of “sufficiently rigorous, well-defined and consistently applied” investment selection criteria and adequate due diligence of new investment options.
Furthermore, there were concerns about the management of conflicts of interest, particularly due to related-party service providers that have investment options on the platform.
Fiducian will be required to appoint an independent expert to undertake separate reviews of certain high-risk products on its platform investment menus and its investment governance and conflicts management frameworks.
After that it will need to undertake a further review of its investment menu against the enhanced onboarding and monitoring requirements to determine the ongoing suitability of each investment option.
It will also be required to have an independent expert undertake a review of the effectiveness of its board and board committees.
Fiducian said it was reviewing the matter and was committed to engaging constructively with APRA.
“Fiducian respects APRA’s role as Australia’s prudential regulator and takes the requirements raised by them seriously,” the company said.
“Fiducian has established frameworks for investment governance, investment options and board operations and shall appoint independent experts as required, to review and recommend any improvement opportunities which Fiducian will implement.
“The aforesaid additional licence conditions do not affect the continuing operations of the fund or safety of members’ assets.”
Fiducian is trustee of the Fiducian Superannuation Fund and has approximately 9779 member accounts and over $3.1 billion in funds under management.
Fiducian Investment Management Services, another subsidiary of the ASX-listed Fiducian Group, told shareholders on Monday it has agreed to pay a $7.3 million fine and up to $650,000 of ASIC’s legal costs over allegations of misleading and deceptive conduct about a now-closed ESG fund.
APRA deputy chair Margaret Cole said the prudential regulator had given a “clear and public warning” to platforms last October that they would escalate supervisory intensity.
“These actions, together with APRA’s enforcement response in December 2025, are consistent with that approach and reflect APRA’s risk-based approach to enforcement, which prioritises issues and entities that pose the most serious prudential risks,” Cole said.
“APRA will continue to coordinate closely with ASIC to address investment governance weaknesses identified in platform trustees.”
