Australia’s corporate watchdog has launched civil penalty proceedings in the Federal Court against Equity Trustees superannuation Limited, alleging the trustee failed to carry out proper due diligence before channelling members’ money into the Shield Master Fund.
ASIC says Equity Trustees, as trustee for AMG Superannuation Fund and Super Simplifier, oversaw the investment of about $160 million of members’ retirement savings into Shield during 2023 and 2024 via its investment platforms. The regulator is seeking declarations and civil penalties.
Deputy Chair Sarah Court said the case formed part of ASIC’s broader efforts to safeguard superannuation. “Instead of acting as an effective gatekeeper for its members’ retirement savings, ASIC alleges Equity Trustees allowed thousands of members invest to in Shield which had no track record. Those members ultimately saw their super balances eroded.
“Superannuation trustees play a critical role helping people save for their retirement. We expect them to do so with care and skill and put the interests of their members first.
“This action should send a clear message to superannuation trustees: proper due diligence is needed when offering investment options for members,” the Deputy Chair said.
ASIC alleges Equity Trustees failed to act with the care, skill and diligence of a prudent superannuation trustee, failed to act in members’ best financial interests, and failed to ensure financial services were provided efficiently, honestly and fairly, contrary to obligations under sections 52 and 54B of the Superannuation Industry (Supervision) Act 1993 and section 912A of the Corporations Act 2001.
“This is the first action against a superannuation trustee in relation to this complex set of investigations and we expect more cases to come,” Deputy Chair Court said. “Our first priority has been preserving assets for the benefit of investors, but the next phase will be holding key players to account.”
The move follows a series of interventions by ASIC in relation to Shield. In February 2024, the regulator halted new offers by imposing interim stop orders on four product disclosure statements. In June 2024, the Federal Court froze Shield assets at ASIC’s request to preserve funds while investigations continue. ASIC understands that since February 2022, more than $480 million has been invested in Shield by at least 5,800 consumers, largely through superannuation platforms overseen by Macquarie Investment Management Limited and Equity Trustees.
ASIC’s investigation is examining Keystone Asset Management Ltd (in liquidation), Shield’s responsible entity, its directors and officers, the role of the super trustees, certain financial advisers who recommended Shield, lead generators and a research house. The regulator also has an ongoing investigation into Equity Trustees concerning the onboarding and ongoing monitoring of the First Guardian Master Fund.
Equity Trustees is a subsidiary of ASX-listed EQT Holdings Limited (ASX: EQT). It holds an Australian Financial Services licence and is the registrable superannuation entity licensee of 14 APRA‑regulated funds with around $88 billion in funds under management and about 800,000 members.
ASIC’s originating process and statement of claim are available on the regulator’s website. Consumers with concerns about advice received or their superannuation trustee can lodge a complaint with the Australian Financial Complaints Authority, and ASIC is posting updates on the Shield Master Fund investigation on its dedicated webpage.
