In a speech, the Australian Securities & Investments Commission (ASIC) outlined its enforcement response to the Shield and First Guardian failures and positioned superannuation trustees as a key gatekeeper in tackling high-risk superannuation switching misconduct. The regulator has made the matters a dedicated enforcement priority and highlighted both ongoing litigation and remediation outcomes involving trustees and other participants in the distribution chain. ASIC said around 11,000 people invested more than AUD 1 billion into Shield and First Guardian. Nearly 50 staff are working on 26 investigations, with 12 cases commenced against 21 defendants; ASIC’s actions have included stop orders, the appointment of receivers and liquidators, court steps to preserve assets and restrict travel, search warrants with the Australian Federal Police, and adviser licence cancellations and bans. Proceedings have been brought against all four super trustees involved, with Macquarie and Netwealth admitting failures and returning more than AUD 420 million combined to around 4,000 members; the Federal Court has also made declarations that Macquarie contravened the Corporations Act by failing to place the Shield Master Fund on a watch list for heightened monitoring. ASIC is seeking compensation for members from Equity Trustees and Diversa, and used the cases to emphasise expectations around substantive due diligence, ongoing monitoring, trustee accountability regardless of member choice, effective systems and controls including compliance with limits such as a 50% holding cap, and maintaining evidence to demonstrate the basis for keeping an option on a platform. ASIC is undertaking a review of trustee practices to understand how they are disrupting high-risk switching models, and has published names of entities and individuals identified in a lead generation review along with features that can indicate consumer risk, while noting it is not alleging wrongdoing by those listed. A separate review is examining advice businesses using lead generation services, with ASIC foreshadowing disruptive or enforcement action where contraventions are detected, and the regulator also expressed support for a government proposal to require trustees to report suspicious or anomalous behaviour patterns that could place members at risk of significant detriment.
Australian Securities & Investments Commission 2026-03-26
Australian Securities & Investments Commission details Shield and First Guardian enforcement actions against super trustees and member refunds exceeding AUD 420 million
The Australian Securities & Investments Commission (ASIC) has prioritized enforcement against superannuation switching misconduct after the Shield and First Guardian failures, affecting over AUD 1 billion from 11,000 investors. ASIC has initiated 26 investigations, including stop orders, asset preservation, and litigation against super trustees, leading to Macquarie and Netwealth returning over AUD 420 million to members. ASIC is reviewing trustee practices and supports a government proposal for mandatory reporting of suspicious activities by trustees.