The Australian Securities & Investments Commission (ASIC) has commenced civil penalty proceedings in the Federal Court against Equity Trustees Superannuation Limited, alleging it failed to conduct proper due diligence in relation to the Shield Master Fund. The case concerns Equity Trustees’ role as a superannuation trustee overseeing around AUD 160 million of members’ retirement savings invested into Shield in 2023 and 2024, with ASIC seeking declarations and civil penalties. ASIC alleges Equity Trustees failed to act with the care, skill and diligence of a prudent superannuation trustee, failed to act in members’ best financial interests, and failed to ensure financial services under its Australian financial services licence were provided efficiently, honestly and fairly, alleging contraventions of sections 52 and 54B of the Superannuation Industry (Supervision) Act 1993 and section 912A of the Corporations Act 2001. As trustee for the AMG Superannuation Fund and Super Simplifier, Equity Trustees approved four classes of Shield as investment options on the NQ Super and Super Simplifier platforms. In the wider Shield matter, ASIC previously halted new offers in February 2024 via interim stop orders on four product disclosure statements and took steps in June 2024 to secure assets held within Shield; ASIC understands that since February 2022 more than AUD 480 million has been invested in Shield by at least 5,800 consumers, primarily through superannuation platforms. ASIC framed the case as the first action against a superannuation trustee within its Shield investigations and indicated further cases are expected as the focus shifts from asset preservation to holding key players to account. Investigations are continuing into Keystone Asset Management Ltd (in liquidation) as responsible entity for Shield, its directors and officers, the role of superannuation trustees, certain financial advisers, lead generators and a research house, alongside a separate ongoing investigation into Equity Trustees concerning the onboarding and ongoing monitoring of the First Guardian Master Fund.
Australian Securities & Investments Commission 2025-08-26
Australian Securities & Investments Commission files civil penalty case against Equity Trustees over alleged Shield Master Fund due diligence failures
The Australian Securities & Investments Commission (ASIC) has initiated civil penalty proceedings against Equity Trustees Superannuation Limited in the Federal Court, alleging failures in due diligence related to the Shield Master Fund. ASIC claims Equity Trustees did not act with the required care and diligence of a prudent superannuation trustee, contravening sections of the Superannuation Industry (Supervision) Act 1993 and the Corporations Act 2001. This marks ASIC's first action against a superannuation trustee in its Shield investigations, with further cases anticipated.