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Netwealth is seeking government aid due to a $100 million loss associated with the collapse of the First Guardian scheme.
(AI video summary)
This video was created on 27 October 2025 for IG audiences by ausbiz.
Netwealth, an Australian financial services platform, has requested federal government assistance to repay around 1100 customers who lost over $100 million in the collapse of the First Guardian Retirement Investment Scheme. Netwealth claims that fraud by the scheme and its manager, Falcon Capital, caused the losses.
The Australian Securities and Investments Commission (ASIC) is investigating the companies involved in the First Guardian collapse, including Netwealth. As a result, Netwealth is suing Equity Trustees over the scheme's effects. Despite the turmoil, Netwealth's share price rose 1.3% to $32.17.
Analysts suggest selling Netwealth due to its high valuation, with the price-to-earnings (P/E) ratio at 67 times. The company saw net inflows of about 4 billion last quarter, but the exposure to First Guardian raises concerns, leading analysts to set a target price of $18.60.
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