ASIC Takes Action Against Equity Trustees Over Shield Fund Failures

‍ ASIC has launched civil penalty proceedings in the Federal Court against Equity Trustees Superannuation Limited, alleging serious due diligence failures relating to the Shield Master Fund. As trustee, Equity Trustees oversaw the investment of approximately $160 million of members’ retirement savings into Shield during 2023 and 2024.

ASIC alleges that Equity Trustees failed to act as a prudent gatekeeper, allowing thousands of members to invest in Shield despite its lack of a proven track record. Many members subsequently saw their superannuation balances eroded. ASIC Deputy Chair Sarah Court emphasised the importance of trustees acting with care and skill, always prioritising members’ best interests.

The regulator claims Equity Trustees did not exercise the required care, skill, and diligence, nor did it act in the best financial interests of its members or ensure financial services were provided efficiently, honestly, and fairly. This is the first action of its kind against a superannuation trustee in this investigation, with more cases expected.

ASIC is seeking declarations and civil penalties, and has already taken steps to preserve Shield’s assets for investors. The investigation continues into the roles of trustees, advisers, and other parties involved in the Shield scheme. Equity Trustees is also under ongoing scrutiny regarding other superannuation funds.

Financial Dispute Legal have been investigating complaints involving financial advice provided by advisors to invest into the Shield Master Fund and the First Guardian Master Fund for over 12 months.  If you were advised to invest into the Shield Master Fund and the First Guardian Master Fund, we ask that you contact Financial Dispute Legal to discuss your circumstances and consider any rights to recover compensation on 1300 433 533 or enquiry@fdlegal.com.au

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