Diversa Trustees faces ASIC’s wrath over First Guardian as court cases mount to chase lost super

One of Australia’s largest super fund licensees, Diversa Trustees, has been accused by the corporate watchdog of failing investors after pouring $300 million in member superannuation savings into the collapsed First Guardian Master Fund over a four-year period.

The Australian Securities and Investments Commission (ASIC) has initiated Federal Court proceedings against Diversa Trustees alleging that the company failed to conduct adequate due diligence on behalf of its members and that it failed to conduct adequate ongoing monitoring of the investments.

ASIC also alleges that Diversa failed to enforce a 50 per cent holding limit imposed for First Guardian and failed to ensure that it complied with that holding limit.

Diversa Trustees was trustee for Powerwrap Master Plan, Praemium SMA Superannuation Fund, YourChoice Super and Australian Practical Superannuation during the period in question - between July 2020 to July 2024.

When liquidators wound up First Guardian in April this year, Diversa had about $243 million invested in First Guardian, which was linked to 2,055 superannuation members.

The company is the latest in a series of targets by ASIC over the collapses of First Guardian and Shield Master Fund which have collectively put at risk the retirement of thousands of Australians.

“This is another significant action relating to the First Guardian collapse which is an ongoing enforcement priority for 2026,” says ASIC deputy chair Sarah Court.

“Superannuation trustees must put their members first by acting with care and skill and by carrying out proper checks on investment options made available on their platforms.”

ASIC’s Federal Court action alleges that Diversa failed to exercise the same degree of care, skill and diligence as a “prudent superannuation trustee would” and that it failed to act in the best financial interests of its members.

ASIC also alleges failures by Diversa to exercise due diligence in developing, offering and reviewing investment options, and to do “all things necessary” to ensure the financial services covered by its Australian financial services licence were provided “efficiently, honestly and fairly”.

Diversa Trustees describes itself as the largest extended public offer licensee in Australia by the number of funds it manages.

The company’s LinkedIn profile says it is responsible for “ensuring that all regulatory and legislative requirements are fully met for each fund, along with collaborating with and monitoring the performance of fund service providers”.

Among the latest companies facing ASIC’s wrath over the collapse of First Guardian and Shield are SQM Research, InterPrac Financial Planning and MWL Financial Services.

These actions came on the heels of court proceedings against Equity Trustees, a subsidiary of EQT Holdings (ASX: EQT), and Macquarie Investment Management Ltd, a subsidiary of Macquarie Group (ASX: MQG).

ASIC says the action against Diversa Trustees is the latest in its bid to seek compensation for the victims of the Shield and First Guardian collapses.

“Our first priority has been preserving assets for the benefit of investors to the extent they are available, and now we’re taking action to hold those we consider responsible to account with 11 cases under way in the Federal Court against 19 defendants,” says Court.

ASIC will seek be seeking orders for compensation, declarations and civil penalties from Diversa.