Shield Master Fund

MWL Financial Services Pty Ltd

AFCA Member No: 11054

AFS Licence No: 235096

Contact details:

• admin@mwl.com.au
• (03) 9866 5888

Interprac Financial Planning Pty Ltd

AFCA Member No: 10416

AFS Licence No: 246638

Authorised representatives: 

• Venture Egg Financial Services Pty Ltd (formerly Ferras Merhi Pty Ltd & United Financial Advice Pty Ltd trading as Venture Egg (ABN 72 776 973 722)
• Rhys Reilly Pty Ltd t/a Reilly Financial (ACN 606 191 557)

Contact details:

• compliance@interprac.com.au
• (03) 9209 9777

Financial Services Group Australia Pty Ltd

AFCA Member No: 10327

AFS Licence No: 225985

Authorised representatives: 

• Rebellis Financial Services Pty Ltd (ACN 666 850 228) (in liquidation)
• 5 Point Australia Pty Ltd (ACN 661 120 583) (in liquidation)
• AS Financial Planning Pty Ltd (ACN 666 648 942) (in liquidation)
• STC Financial Pty Ltd (ACN 669 888 984) (in liquidation)

Contact details:

• admin@fsga.com.au
• (03) 9961 0524

ASIC cancelled FSGA’s Australian financial services licence on 7 June 2025.

In cancelling FSGA’s licence, ASIC required FSGA to remain a member of AFCA until 4 June 2026. If you intend to lodge a complaint with AFCA in relation to advice received from FSGA you should do so by 4 June 2026. 

Next Generation Advice Pty Ltd (In Liquidation)

AFCA Member No: 12450

AFS Licence No: 1296335

Contact details:

• rmiles@mcleodsaccounting.com.au
• (07) 5621 0080

On 18 October 2024, ASIC cancelled the Australian financial services (AFS) licence of Next Generation Advice Pty Ltd (in Liquidation).

ASIC has specified that Next Gen must continue its membership of AFCA until 17 October 2025.  If you intend to lodge a complaint with AFCA in relation to advice received from Next Gen, you should do so by 17 October 2025. 

1. Can I withdraw my investment?

KAM suspended redemptions in February 2024. You cannot transfer or withdraw your investment as all redemptions are frozen due to the liquidation so that the overall financial position of the fund and recoverability of the fund’s investments can be assessed by the liquidators.

2. What has happened to my money? 

Following concerns raised by ASIC, the Federal Court appointed receivers to KAM. 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. The appointed liquidators and receivers are investigating the financial position of Shield and KAM and have commenced legal proceedings to recover investor funds: see Significant Event Notice dated 13 December 2024. The liquidators will keep unitholders informed and will provide updates on their website with respect to any material developments: A&M website.

On 22 November 2024, the receivers published a Significant Event Notice which provided a preliminary estimate of returns for unitholders and contains detailed information of the sources and uses of investor funds.

3. When can I expect to receive my money and how much will I receive?

On 22 November 2024, the liquidators published a Significant Event Notice which provided a preliminary estimate of returns for investors.

Whether any money is returned depends on available assets, court outcomes and the results of liquidation and recovery proceedings.

The liquidators have published a webpage where they are providing updates in respect of KAM and the Shield Master Fund, which is available here: A&M website.

4. Is ASIC able to advise on the status of my investment?

Unfortunately, ASIC is not able to provide any information, documents or advice specific to your investment. 

If your investment was facilitated through a superannuation platform, you may wish to contact your superannuation trustee for further information about your investment. If you have concerns about your superannuation or investment platform provider, you may wish to consider lodging a complaint with AFCA.

5. I received an email or message about recovering my investment or compensation – is it legitimate?

Be alert—we are aware of emails impersonating professional firms that claim to be able to recover lost funds or provide compensation. These may include links to websites requesting login details and other personal or financial information.

ASIC strongly recommends you not to click on any links or respond to these messages or emails.

ASIC’s Moneysmart website includes guidance that unexpected contact, constant contact and pressure to take action or make a quick decision are warning signs of scams: Protect yourself from scams.

Moneysmart also provides guidance to hang up the call, or block emails or text messages, if someone offers from a third-party organisation to recover lost funds, or claims they can recover your losses for a percentage of the recovered losses or for a fee they say is a ‘tax’, ‘deposit’, ‘retainer’ or ‘refundable insurance bond’: What to do if you've been scammed.

If you receive a suspicious message, you can report it to Scamwatch: Report a scam | Scamwatch.

6. What should I do if I received financial advice from FSGA or its representatives or Next Generation Advice Pty Ltd (In Liquidation) or its representatives as their Australian financial services licences have been cancelled?

Former clients still have the right to lodge a complaint with AFCA for up to one year from the date of licence cancellation, provided the conduct occurred while the firm was licensed.

If you intend to lodge a complaint with AFCA in relation to advice received from FSGA or its authorised representatives you should do so by 4 June 2026.

Further information in relation to FSGA’s licence cancellation can be found on ASIC’s website: 25-102MR ASIC cancels AFS licence of Financial Services Group Australia.

If you intend to lodge a complaint with AFCA in relation to advice received from Next Gen, you should do so by 17 October 2025.      Further information in relation to Next Gen’s licence cancellation can be found on ASIC’s website: 24-235MR ASIC cancels AFS licence of Next Generation Advice | ASIC

7. What should I do if I invested through my Self-Managed Superfund (SMSF)?

If your investment in Shield was made through a SMSF you may wish to consider contacting your accountant or seek independent financial advice. ASIC’s Moneysmart website has information on how to choose a financial adviser.

AFCA also has important information on its website which outlines who can bring a complaint to AFCA about advice or services provided to a SMSF: Factsheet – SMSF complaints.

8. Where can I get information regarding the liquidation? Are the Liquidators’ reports available to investors? 

The liquidators have published a webpage where they are providing updates in respect of KAM and the Shield Master Fund, which is available here: A&M website.

Investors can contact the liquidators with any queries by emailing shieldinvestors@alvarezandmarsal.com.

9. What is ASIC investigating and how long will it take?

For further detail as to why ASIC took this action, see the Updates section above. ASIC cannot comment on its open investigation further than what is available through its court actions. 

ASIC has set out its approach to enforcement in Information Sheet 151 ASIC’s approach to enforcement. ASIC considers a number of factors when deciding if enforcement action is appropriate to address particular misconduct, such as the seriousness of the alleged misconduct, its impact on the confidence of investors and financial consumers, and the consequences of the misconduct for investors and others.

Due to the scale and complexity of the investigation, we cannot estimate how long it will take.

10. Where can I get information about financial hardship?

We understand this may be a difficult time for you. Further support is available if you need it.

If you are experiencing financial difficulty, you can speak to an independent financial counsellor for free by contacting the National Debt Helpline (NDH) on 1800 007 007 (9:30am to 4.30pm in your local Australian time zone, Monday to Friday). The NDH may not be able to assist with your specific investment.

You can also find a financial counselling agency using the map on ASIC’s Moneysmart website.

11. Where can I access free independent legal advice?

You may be able to obtain free independent legal advice from a community legal centre – You can search for your local community legal centre here: Legal Help – CLCs Australia.

Justice Connect may be able to link eligible individuals with firms and barristers that may be able to provide pro bono legal advice. You can visit the Justice Connect webpage here: Home – Justice Connect for more information.

12. Where can I get information about mental health support?

If you are experiencing a mental health crisis and want to talk to someone straight away the following services operate 24/7:

Lifeline

• Lifeline Crisis Support – 13 11 14
• They also offer online chat and text crisis services.
• Services | Lifeline

Beyond Blue

The Beyond Blue Support Service is available 24/7 for brief counselling. You can call them on 1300 22 4636 or chat to them online.  They also have a variety of other mental health supports you can access.

• Beyond Blue | 24/7 Support for Anxiety, Depression and Suicide Prevention - Beyond Blue
• Call a counsellor on 1300 22 4636 or chat to a counsellor online.

Aboriginal and Torres Strait Islander people

• 13YARN — call 13 92 76 to talk to an Aboriginal or Torres Strait Islander Crisis Supporter, 24/7.

For information about non-crisis counselling resources:

• Mental Health Support via your GP
  • You can access mental health support by visiting your GP and getting a mental health plan: Mental health treatment plan | healthdirect
• Australian Psychological Society
  • This website provides a listing of Registered Psychologists, including areas of specialty and location: Find a Psychologist | APS
  • Psychologists set their own fees so there may also be a gap between what Medicare will pay and what is charged. Some psychologists do not provide a Medicare rebate so it is best to ask about fees prior to your session
• Services Australia
  • This website explains how the Medicare system works in relation to accessing mental health care under the Medicare system: Mental health care and Medicare - Medicare - Services Australia
• 1800Respect
  • If you are experiencing family violence including economic abuse you can contact the National domestic violence service – 1800Respect on 1800 737 732: Home | 1800RESPECT

7 February 2024

On 7 February 2024, ASIC issued interim stop orders to prevent new investment in the Shield Master Fund due to concerns about four product disclosure statements (PDSs) for Shield. The interim orders stopped KAM from offering, issuing, selling or transferring interests in the Balanced class, Growth class, High Growth class and Conservative class units of Shield. ASIC made the interim orders to protect retail investors from acquiring products under PDSs that may be defective (24-018MR).

18 June 2024

On 18 June 2024, the Federal Court made interim orders preserving the assets of KAM to help protect investor funds while an investigation is continuing (24-129MR). ASIC has taken a range of Court actions in respect of KAM and in seeking orders from the Court, ASIC alleged that:

• KAM is the trustee of the Advantage Diversified Property Fund (ADPF), a wholesale property fund into which a large proportion of Shield’s funds have been invested
• the ADPF has made loans to various companies associated with Paul Chiodo (former director of KAM) to fund property development projects in Fiji, Italy, Port Douglas, and Melbourne
• substantial sums appear to have been spent on property developments without written contracts and in the case of the Port Douglas development, without the requisite development approvals to proceed
• there is a substantial shortfall when comparing the monies invested in the ADPF against the value of the assets of the ADPF, and
• investor funds may have been misapplied.

26 June 2024

On 26 June 2024, Mr Tracy and Ms Palaghia of Deloitte were appointed by the Federal Court to take control of Shield’s bank accounts and provide a report on its financial position (24-137MR).

27 August 2024

On 27 August 2024, the Federal Court made orders appointing Mr Tracy and Ms Palaghia of Deloitte as receivers and managers of the property of KAM. The receivers are required to:

• secure property held by KAM in its capacity as responsible entity of Shield and trustee of certain other funds
• investigate how Shield investor money was used by KAM, and
• recover assets for investors where possible.

When handing down his reasons in relation to the appointment of receivers (Judgment – appointment of receivers), Justice Moshinsky stated:

“The extent of Keystone’s mismanagement confirms that there is a need to protect the interests of investors from what appear to be conflicts of interest and breaches of trusts…On the basis of the material before the Court, I do not have confidence that the SMF [Shield Master Fund] and ADPF [Advantage Diversified Property Fund] are being managed in the best interests of investors, or that Keystone is capable of providing such management…there are real doubts about the status and value of investments in the SMF and ADPF.”

28 August 2024

On 28 August 2024, KAM’s directors appointed Scott Langdon, John Mouawad and Michael Korda of KordaMentha as voluntary administrators of KAM.

5 September 2024

On 5 September 2024, the Federal Court made orders removing Scott Langdon, Michael Korda and John Mouawad of KordaMentha as voluntary administrators and appointed Mr Tracy and Ms Palaghia of Deloitte as voluntary administrators in addition to their role as receivers (24-197MR).

18 October 2024

On 18 October 2024, ASIC cancelled the Australian financial services (AFS) licence of Next Generation Advice Pty Ltd (in Liquidation) (Next Gen). If you intend to lodge a complaint with AFCA in relation to advice received from Next Gen, you should do so by 17 October 2025.

22 November 2024

On 22 November 2024, the liquidators published a Significant Event Notice which provided a preliminary estimate of returns for unitholders. The receivers have commenced legal proceedings on behalf of KAM and have frozen further monies: for further detail see Significant Event Notice dated 13 December 2024.

2 December 2024

On 2 December 2024, creditors voted to wind up KAM. Jason Tracy and Glen Kanevsky of Deloitte were appointed joint and several liquidators (24-265MR).

February and March 2025

In February 2025 and March 2025, the Federal Court made interim orders freezing assets of persons connected to the Shield investigation including:

• Osama Saad, former director of Aus Super Compare Pty Ltd (in liquidation) and Atlas Marketing Pty Ltd (in liquidation) (25-023MR);
• Ferras Merhi of Venture Egg Financial Services Pty Ltd & United Financial Advice Pty Ltd t/as Venture Egg (Venture Egg) and Financial Services Group Australia Pty Ltd (FSGA) (25-024MR); and
• Rashid Alshakshir, director of Lion & Horn Pty Ltd (in liquidation), Nohap Pty Ltd (in liquidation) and Indigo Group Pty Ltd (in liquidation) (25-043MR).

10 April 2025

On 10 April 2025, the liquidators notified unitholders of the termination of the Shield Master Fund. A copy of the notice is available on the Liquidators’ website at: A&M website.

7 June 2025

On 7 June 2025, ASIC cancelled the Australian Financial Services (AFS) licence of Financial Services Group Australia Pty Ltd (FSGA) and permanently banned FSGA’s Responsible Manager (RM) Graham Holmes (25-102MR). Certain authorised representatives of FSGA provided personal financial product advice to consumers to invest in the Shield Master Fund. Ferras Merhi was the sole director of FSGA from 10 February 2021 to 30 May 2025. ASIC is investigating Mr Merhi and various entities associated with him, in connection with its investigations concerning Shield and First Guardian. If you intend to lodge a complaint with AFCA in relation to advice received from FSGA or its authorised representatives you should do so by 4 June 2026.

24-018MR - 7 February 2024 – ASIC halts offers of Shield Master Fund

ASIC has made interim stop orders on four product disclosure statements (PDSs) for classes of units of the Shield Master Fund (ARSN 650112057) (Fund), a registered managed fund promoted by KAM (24-018MR).

24-129MR 18 June 2024 – Federal Court freezes assets of Shield Master Fund

ASIC has obtained interim orders from the Federal Court freezing the assets of the Shield Master Fund (Shield), a registered managed fund whose responsible entity is KAM (24-129MR).

24-137MR - 26 June 2024 – Court appoints independent party to verify payments made from the Shield Master Fund

The Federal Court has appointed Jason Tracy and Lucica Palaghia of Deloitte to have full control of the bank accounts of the Shield Master Fund (Shield) (24-137MR).

24-197MR - 27 August 2024 – Court appoints receivers and managers to the property of KAM and on 5 September 2024 – Court appoints voluntary administrators to KAM

On 27 August 2024, the Federal Court appointed Jason Tracy and Lucica Palaghia of Deloitte as receivers of the property of KAM.

On 5 September 2024, the Federal Court made orders appointing Mr Tracy and Ms Palaghia of Deloitte as voluntary administrators in addition to their role as receivers (Orders) (24-197MR).

24-265MR - 3 December 2024 – Update for investors in the Shield Master Fund

ASIC notes the outcome of the second creditors’ meeting of KAM on 2 December 2024 at which creditors resolved to wind up KAM and appoint Jason Tracy and Glen Kanevsky of Deloitte as joint and several liquidators (24-265MR).

25-024MR - 27 February 2025 – Federal Court freezes assets of financial adviser of Venture Egg and FSGA

Following an application made by ASIC, the Federal Court has made interim orders freezing certain assets of Melbourne-based financial adviser Ferras Merhi.

Effective 31 May 2025, Mr Merhi and Venture Egg are no longer authorised representatives of Interprac Financial Planning Pty Ltd (25-024MR).

25-023MR - 27 February 2025 – Federal Court freezes assets of former director of Aus Super Compare and Atlas Marketing

Following an application made by ASIC, the Federal Court has made interim orders freezing certain assets of Osama Saad, former director of Aus Super Compare Pty Ltd (in liquidation) and Atlas Marketing Pty Ltd (in liquidation) (25-023MR).

25-043MR - 18 March 2025 – Federal Court freezes assets of Rashid Alshakshir in connection with ASIC’s investigations into Shield and First Guardian

Following an application made by ASIC, the Federal Court has made orders freezing assets of Rashid Alshakshir, director of Lion & Horn Pty Ltd (in liquidation), Nohap Pty Ltd (in liquidation) and Indigo Group Pty Ltd (in liquidation) (25-043MR).

25-102MR - 13 June 2025 - ASIC cancels AFS licence of Financial Services Group Australia and permanently bans its responsible manager

On 7 June 2025, ASIC cancelled the Australian Financial Services (AFS) licence of Financial Services Group Australia Pty Ltd (FSGA) and permanently banned FSGA’s Responsible Manager (RM) Graham Holmes.

Certain authorised representatives of FSGA provided personal financial product advice to consumers who invested the First Guardian Master Fund. Ferras Merhi was the sole director of FSGA from 10 February 2021 to 30 May 2025. ASIC is investigating Mr Merhi and various entities associated with him, in connection with its investigations concerning Shield and First Guardian. If you intend to lodge a complaint with AFCA in relation to advice received from FSGA or its authorised representatives you should do so by 4 June 2026 (25-102MR).