ASIC sues EQT over Shield | Australian Markets

The Australian Securities and Investments Commission (ASIC) has began Federal Court civil penalty proceedings in opposition to Equity Trustees Superannuation Limited regarding the Shield Master Fund alleging failures in due diligence.

Announcing the transfer, ASIC claimed that as superannuation trustee, Equity Trustees oversaw the investment of round $160 million of retirement financial savings into Shield over 2023 and 2024 by way of its fund.

Commenting on the transfer, ASIC Deputy Chair Sarah Court mentioned ASIC was taking motion in opposition to Equity Trustees as half of its ongoing work to guard members’ superannuation financial savings.

“Instead of appearing as an efficient gatekeeper for its members’ retirement financial savings, ASIC alleges Equity Trustees allowed hundreds of members invest to in Shield which had no observe document. Those members in the end noticed their super balances eroded.

“Superannuation trustees play a important position serving to people save for his or her retirement. We count on them to take action with care and talent and put the pursuits of their members first.

“This action should send a clear message to superannuation trustees: proper due diligence is needed when offering investment options for members,” Court mentioned.

ASIC alleges Equity Trustees failed in relation to Shield:

• to train the identical degree of care, talent and diligence as a prudent superannuation trustee would
• to behave within the best financial pursuits of its members
• to do all issues needed to make sure the financial providers coated by its Australian financial providers licence had been supplied effectively, actually and pretty.

“This is the first action against a superannuation trustee in relation to this complex set of investigations and we expect more cases to come,” Court mentioned.

“Our first priority has been preserving assets for the benefit of investors, but the next phase will be holding key players to account.”

ASIC is looking for declarations and civil penalties from the Court.

Equity Trustees later issued a assertion to the Australian Securities Exchange through which it acknowledged ASIC’s actions and mentioned it was contemplating the regulator’s method and would reply to the substance of the claims in the end.

It mentioned it had absolutely cooperated with ASIC’S investigations and is continuous to help impacted members by taking steps to maximise their recoveries from the liquidation course of.