Macquarie Investment Management Ltd (MIML) has committed to paying thousands of Australians who invested hundreds of millions in retirement savings in the Shield Master Fund and has admitted it contravened the Corporations Act.

The Australian Securities and Investments Commission (ASIC) has commenced proceedings in the Federal Court against MIML following admissions that it did not act efficiently, honestly and fairly by failing to place Shield on a watch list for heightened monitoring.  ASIC has also accepted a court-enforceable undertaking from MIML to ensure Macquarie pays to members 100% of the amounts they invested in Shield less any amounts withdrawn.

As superannuation trustee, MIML oversaw approximately $321 million in super investments into Shield by around 3,000 of its members between 2022 and 2023.

Macquarie has admitted the allegations in the proceeding. It is a matter for the Court to determine whether the declarations are appropriate.

In June 2024, ASIC took action to secure the assets held within Shield. ASIC sought orders to preserve the assets of the scheme so that they may be recovered, to the extent available, for the benefit of investors while the investigation is continuing.

ASIC understands that, since February 2022, funds totalling more than $480 million have been invested in Shield by at least 5,800 consumers, who accessed Shield primarily through superannuation platforms, the trustees for which were Macquarie Investment Management Limited and Equity Trustees.

The investigation to date suggests that potential investors were typically called by lead generators and referred to personal financial advice providers who advised investors to roll their superannuation assets into a retail superannuation fund available on a choice platform and then to invest part or all of their superannuation into Shield.

ASIC is investigating the circumstances surrounding Shield. ASIC is investigating Keystone Asset Management Ltd (in liquidation), its directors and officers, the role of the superannuation trustees, certain financial advisers who recommended investors invest in Shield, the lead generators, and the research house which rated Shield.

This action follows proceedings ASIC launched in the Federal Court against Equity Trustees Superannuation Limited in August. That matter is continuing through the legal process.