Earlier this week, it was announced that Macquarie Investment Management Limited (MIML) had reached an agreement to fully remediate all of its superannuation members who invested in Shield Master Fund. As a superannuation trustee, MIML oversaw approximately $321 million in super investments into Shield by around 3,000 of its members between 2022 and 2023.
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”.
Macquarie Super members who invested in Shield have been unable to redeem their funds since February 2024 after Keystone Asset Management redemptions.
Commenting on the news, Phil Anderson, general manager for policy, advocacy and standards at the Financial Advice Association Australia (FAAA), said it will be welcome news to those affected individuals.
“It is great news for those who invested in the Shield Master Fund through the Macquarie super platform, that Macquarie has agreed to fully compensate these clients. Seemingly they will reimburse them and then take on the uncertainty with respect to whatever recoveries can be made through the liquidation. We welcome Macquarie taking this action.
“This is a very good outcome for these clients who have been so badly impacted by the collapse of this managed investment scheme. Hopefully, this will provide relief for them in what has been a very difficult and challenging experience.”
He also praised the efforts of ASIC to take action against the super fund. As well as MIML, ASIC has also commenced civil penalty proceedings in the Federal Court against Equity Trustees, which oversaw the investment of around $160 million of retirement savings into Shield over 2023 and 2024 through its fund.
This alleges Equity Trustees failed to exercise the same degree of care, skill and diligence as a prudent superannuation trustee would, failed to act in the best financial interests of its members and failed to do all things necessary to ensure the financial services covered by its Australian Financial Services Licence were provided efficiently, honestly, and fairly.
Anderson said: “We also recognise the efforts of ASIC to negotiate this outcome and appreciate that it will place pressure on the other super funds to take similar action. This intervention will help to restore confidence in the Australian super system and financial services more broadly.”
Factually incorrect. Macquarie has decided to only compensate what was initially invested. I would encourage people to lodge an AFCA complaint against Macquarie so that Macquarie pays up the ‘but for’ element of the damages.
Important to point out that Macquarie has admitted to breaching the corporations act, APRA Prudential Standard and the SIS Act. But has their license been cancelled? Oh wait, it’s only small business licensees that get a license cancellation. There are different rules for big business.