The Federal Court has today made declarations that Macquarie Investment Management Limited (MIML) contravened the Corporations Act by failing to place the Shield Master Fund (Shield) on a watch list for heightened monitoring.

Based on a Statement of Agreed Facts and Admissions filed by the parties, His Honour Justice Wheelahan made declarations that MIML should have placed the Shield investment options on a watch list so that they could be subject to further monitoring, such as additional reporting, due diligence, performance monitoring or other follow-up action.

ASIC commenced proceedings against MIML after accepting a court enforceable undertaking that Macquarie pay over 3,000 affected members 100% of the amounts they invested in Shield, less any amounts withdrawn (25-215MR).

Approximately $321 million was paid to affected members in September last year.

Deputy Chair Sarah Court said today’s outcome was another important milestone as part of ASIC’s 2026 enforcement priority related to the collapse of Shield.

‘Superannuation trustees play a crucial role safeguarding the retirement savings of their members.

‘Australians expect super trustees to take the steps necessary to monitor funds available on their platforms.

‘In this case, those steps could and should have triggered closer scrutiny of these investments.

‘Following ASIC’s investigation, Macquarie paid members quickly, providing them certainty by returning them to the position they were in before their retirement savings were eroded.

‘Today’s declarations reinforce that trustees must put members first and take active steps to identify and respond to risks,’ the Deputy Chair said.

In his reasons, Justice Wheelahan said the declarations sought were appropriate because ‘they inform the public of the harm arising from Macquarie’s contravening conduct, and they deter other corporations from contravening the Corporations Act.’

The Court noted that ASIC did not seek a pecuniary penalty against MIML owing to what it considered the exceptional circumstances of the case, including payments made to investors.

ASIC continues to investigate misconduct relating to the Shield and First Guardian Master Funds to hold those involved to account.

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Judgment

Background

• MIML is a subsidiary of Macquarie Group Limited and is the superannuation trustee of the Macquarie Superannuation Plan and operates the Macquarie wrap platform.
• As superannuation trustee, MIML oversaw approximately $321 million in super investments into Shield by around 3,000 of its members between 2022 and 2023.
• In February 2024, ASIC halted new offers of investments in Shield by making interim stop orders on four product disclosure statements.
• In June 2024, ASIC took action to secure the assets held within Shield to preserve them for the benefit of investors while investigations continue.
• ASIC is investigating the conduct of the responsible entity for Shield, its directors and officers, the role of superannuation trustees, certain financial advisers, lead generators and others involved in the promotion and distribution of Shield.
• ASIC and APRA coordinated closely in relation to this matter, consistent with their collaborative approach to issues of shared regulatory interest.
• ASIC determined not to seek the imposition of a civil penalty against Macquarie given the exceptional circumstances, including:
  • the strong public interest in obtaining a timely court-based outcome which will encourage other superannuation trustees to comply with their legal obligations in the context of choice platforms; 
  • the interests of providing affected members who invested into Shield through a regulated superannuation fund with certainty in a timely manner; and 
  • the level of cooperation demonstrated by Macquarie in agreeing to pay members 100% of the amounts invested in Shield less any amounts withdrawn, without waiting for an outcome of the Shield liquidation or proceedings against other parties involved.  
• Proceedings that ASIC has commenced against Equity Trustees Superannuation Limited seeking compensation for investors in Shield (25-176MR), and against Diversa Trustees Limited seeking compensation for investors in First Guardian (25-296MR), are continuing.
• In December, ASIC announced that Netwealth agreed to pay over $100 million in compensation to more than 1,000 Australians who invested their superannuation in the First Guardian Master Fund and has admitted it contravened the Corporations Act (25-307MR).