The Australian Securities & Investments Commission has commenced Federal Court proceedings against Macquarie Investment Management Ltd (MIML) after admissions it contravened the Corporations Act in connection with member investments in the Shield Master Fund (Shield), and has accepted a court-enforceable undertaking requiring Macquarie to remediate affected members. The undertaking requires payment to members of 100% of the amounts they invested in Shield less any amounts withdrawn. As superannuation trustee, MIML oversaw approximately AUD 321 million in superannuation investments into Shield by around 3,000 members between 2022 and 2023, and admitted it did not act efficiently, honestly and fairly by failing to place Shield on a watch list for heightened monitoring. ASIC determined not to seek a civil penalty, citing the public interest in a timely court-based outcome, the need to provide affected members with timely certainty, and Macquarie’s cooperation in agreeing to full repayment without waiting for Shield’s liquidation outcome or other proceedings. It is now for the Court to determine whether the declarations sought are appropriate. ASIC said it continues to investigate misconduct relating to the Shield and First Guardian Master Funds and noted separate Federal Court proceedings against Equity Trustees Superannuation Limited remain on foot.

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