Macquarie Investment Management Ltd has agreed to reimburse thousands of superannuation members who invested in the Shield Master Fund and has admitted it contravened the Corporations Act by failing to act efficiently, honestly and fairly.
ASIC has launched Federal Court proceedings after the firm admitted it did not place Shield on a watch list for heightened monitoring. The regulator has also accepted a court‑enforceable undertaking from the company to ensure Macquarie pays members 100% of the amounts they invested in Shield, less any amounts already withdrawn.
ASIC Deputy Chair Sarah Court said, ‘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.
‘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.’
As superannuation trustee, Macquarie Investment Management oversaw approximately $321 million invested in Shield by around 3,000 of its members between 2022 and 2023. Macquarie has admitted the allegations in the proceeding, with the Court to determine whether declarations are appropriate.
ASIC said it would not seek a civil penalty in what it described as exceptional circumstances, citing the public interest in a timely, court‑based outcome that would reinforce compliance by superannuation trustees on choice platforms, the need to provide certainty to affected members swiftly, and Macquarie’s cooperation in agreeing to repay members in full (less withdrawals) without waiting for the Shield liquidation or other proceedings.
‘Superannuation trustees offering choice platforms are on notice. 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,’ Ms Court said. ‘ASIC is continuing to investigate misconduct relating to the Shield and First Guardian Master Funds to hold those involved to account.’
ASIC halted new offers of investments in Shield in February 2024, issuing interim stop orders on four product disclosure statements. Macquarie Super members who invested in Shield have been unable to redeem their funds since February 2024 after Keystone, Shield’s responsible entity, froze redemptions.
In June 2024, the Federal Court froze Shield’s assets at ASIC’s request to preserve them for investors while investigations continue. ASIC understands that since February 2022, more than $480 million has been invested in Shield by at least 5,800 consumers, primarily via superannuation platforms whose trustees were Macquarie Investment Management Limited and Equity Trustees.
ASIC is investigating Keystone Asset Management Ltd (in liquidation), its directors and officers, the role of superannuation trustees, certain financial advisers who recommended Shield, the lead generators, and the research house that rated the fund. The action follows Federal Court proceedings commenced in August against Equity Trustees Superannuation Limited, which remain before the court.
Macquarie Investment Management is a subsidiary of Macquarie Group Ltd, the trustee of the Macquarie Superannuation Plan and operator of the Macquarie wrap platform. The firm is co‑regulated by APRA, and ASIC said it coordinated closely with APRA on this matter. ASIC has published a Statement of Agreed Facts and Admissions and the Court Enforceable Undertaking.
