The Australian Securities and Investments Commission (ASIC) has commenced civil penalty proceedings in the Federal Court against Equity Trustees Superannuation Limited, alleging failures in due diligence concerning the Shield Master Fund.

As superannuation trustee, Equity Trustees oversaw the investment of around $160 million of retirement savings into Shield over 2023 and 2024 through its fund.

ASIC Deputy Chair Sarah Court said ASIC was taking action against Equity Trustees as part of its ongoing work to protect members’ superannuation savings.

‘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.

ASIC alleges Equity Trustees failed in relation to Shield:

• to exercise the same degree of care, skill and diligence as a prudent superannuation trustee would
• to act in the best financial interests of its members
• to do all things necessary to ensure the financial services covered by its Australian financial services licence were provided efficiently, honestly and fairly.

‘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.

ASIC is seeking declarations and civil penalties from the Court.