Macquarie Investment Management (MIML) has admitted to contravening the Corporations Act over its role in the Shield Master Fund (Shield) and committed to repaying thousands of Australians whose retirement savings were put at risk.
ASIC has commenced proceedings in the Federal Court after MIML admitted it failed to act efficiently, honestly, and fairly by not placing Shield on a heightened monitoring watch list.
The regulator has accepted a court-enforceable undertaking requiring Macquarie to repay members 100% of their investments in Shield, less any withdrawals.
MIML, a subsidiary of Macquarie Group and trustee of the Macquarie Superannuation Plan, also operates the Macquarie wrap platform. It is co-regulated by APRA, with ASIC and APRA coordinating closely on the case.
“This is an important outcome that stems the significant losses that threatened thousands of members’ retirement savings after they used Macquarie’s platform to invest their super in Shield,” ASIC Deputy Chair Sarah Court (pictured) said in a media release.
“Many members thought their funds were safe when they used Macquarie’s super platform to invest in Shield, which had no track record. ASIC’s investigation will see Macquarie return these members to the position they were in before their retirement savings were eroded.”
Between 2022 and 2023, about 3,000 Macquarie members invested $321 million of superannuation into Shield. ASIC’s broader investigation shows that since February 2022, more than $480 million has flowed into Shield from at least 5,800 consumers across multiple super platforms, including Macquarie and Equity Trustees.
In February 2024, ASIC halted new offers of Shield investments and made interim stop orders on its disclosure statements. That same month, Keystone Asset Management, Shield’s responsible entity, froze redemptions, preventing investors from withdrawing funds. By June 2024, ASIC had sought Federal Court orders to preserve Shield’s assets for recovery.
ASIC said it would not seek civil penalties against Macquarie in this case, citing the strong public interest in a timely outcome, the certainty of full repayments for members, and Macquarie’s cooperation.
“Superannuation trustees offering choice platforms are on notice,” Court said. “They are gatekeepers for retirement savings. ASIC expects them to take active steps to monitor the funds they make available to members through their platforms.”
ASIC is continuing to investigate Keystone, its directors, financial advisers, lead generators, and other parties linked to Shield, as well as Equity Trustees, which also faces Federal Court proceedings.
For mortgage and financial advisers, the case highlights the importance of due diligence when recommending or comparing investment-linked superannuation products. The regulator’s actions show a clear expectation that trustees and advisers ensure products offered on platforms are appropriately monitored, with customer protection prioritised.
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