Quick Facts
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Fine Amount: No civil penalty imposed; instead, court-enforceable undertaking to compensate affected members 100% of investments less withdrawals (approximately $321 million total invested)
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Primary Violation: Failure to provide financial services efficiently, honestly and fairly under s 912A(1)(a) of the Corporations Act
- Regulator: Australian Securities and Investments Commission (ASIC)
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Relevant Period: 22-Nov-21 > 5-Jun-23
- Fine Date: 24-Sep-25
Overview
The Australian Securities and Investments Commission (ASIC) commenced proceedings in the Federal Court against Macquarie Investment Management Ltd (MIML) in its capacity as trustee of the Macquarie Superannuation Plan. MIML admitted to contravening s 912A(1)(a) of the Corporations Act by failing to act efficiently, honestly and fairly, specifically by not placing the Shield Master Fund on a watch list for heightened monitoring despite triggers under its Investment Governance Framework.
ASIC accepted a court-enforceable undertaking from MIML to compensate approximately 3,000 affected members for 100% of their investments in Shield (less any withdrawals), totaling around $321 million invested between 2022 and 2023. No civil penalty was sought due to MIML's cooperation and the need for timely member relief.
Details of the Case
ASIC's proceedings stem from MIML's role as trustee of the Macquarie Superannuation Plan, part of the Macquarie Wrap platform, which offered investment options including the Shield Master Fund (SMF).
Between 2022 and 2023, approximately 3,000 members invested about $321 million in superannuation into SMF via the platform. MIML admitted that it failed to comply with its internal Investment Governance Framework (IGF), which required placing funds on a watch list for additional monitoring when certain criteria were met, such as rapid asset growth or performance issues.
This failure occurred despite multiple triggers between March 2022 and June 2023. As a result, members were unable to redeem their investments since February 2024, when the responsible entity for SMF froze redemptions. ASIC's action is part of a broader investigation into SMF, including its responsible entity (Keystone Asset Management Ltd, now in liquidation), directors, financial advisers, lead generators, and a research house that rated the fund.
WORKED EXAMPLES
Failure to Place SMF on Watch List - 1 March 2022
The Conservative, Balanced, and Growth classes of the SMF were added to the Macquarie Wrap platform. MIML ought to have placed each class on a watch list under its IGF, as the Watch List required funds to be subject to further monitoring action, including in accordance with the IGF provisions for additional reporting, due diligence, performance monitoring, or other follow-up.
MIML did not do so, breaching its obligation to monitor new funds with no track record effectively.
Failure to Place SMF on Watch List - 1 March to 5 June 2023 (Conservative, Balanced, and Growth Classes)
During this period, MIML ought to have placed each of the Conservative, Balanced, and Growth classes of the SMF on a watch list, in order that they could be subject to further monitoring action including additional reporting, due diligence, performance monitoring, or other follow-up in accordance with the IGF.
MIML did not do so, allowing unchecked growth in investments without heightened oversight, contributing to the erosion of members' retirement savings.
Failure to Place SMF on Watch List - 6 May 2022 (High Growth Class)
The High Growth class of the SMF was added to Wrap. MIML ought to have placed that class on a watch list under the IGF, in order that it could be subject to further monitoring action, including additional reporting, due diligence, performance monitoring, or other follow-up.
MIML did not do so, missing an opportunity to apply scrutiny to a new class amid rapid fund inflows.
Overall Failure to Ensure Efficient, Honest, and Fair Services - 1 March 2022 to 5 June 2023
By reason of the matters in the above examples, at all times during this period, MIML failed to do all things necessary to ensure that the financial services covered by its financial services licence were provided efficiently, honestly, and fairly, thereby contravening s 912A(1)(a) of the Corporations Act.
This led to approximately $321 million in unmonitored investments by 3,000 members, with redemptions frozen since February 2024.
Fines and Penalties
No civil penalty was imposed or sought by ASIC. Instead, MIML provided a court-enforceable undertaking to pay affected members 100% of the amounts they invested in the Shield Master Fund, less any amounts withdrawn.
The total investments affected through MIML's platform amounted to approximately $321 million from around 3,000 members. Additionally, the parties agreed that MIML would pay ASIC's costs in an amount to be agreed or, in the absence of agreement, as taxed.
Key Quotes
This is an important outcome that stems the significant losses that threatened thousands of members’ retirement savings after they used Macquarie’s platform to invest their super in Shield." (ASIC Deputy Chair Sarah Court)
"Superannuation trustees offering choice platforms are on notice. They are gatekeepers for retirement savings. ASIC expects them to take active steps to monitor the funds they make available to members through their platforms." (ASIC Deputy Chair Sarah Court)
"ASIC’s investigation will see Macquarie return these members to the position they were in before their retirement savings were eroded." (ASIC Deputy Chair Sarah Court)
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