Australia’s corporate regulator has launched civil penalty proceedings in the Federal Court against Equity Trustees Superannuation Limited, alleging the trustee failed in its duties when investing retirement savings into the Shield Master Fund.
ASIC Sues Equity Trustees Over Alleged Superannuation Due Diligence Failures
The Australian Securities and Investments Commission (ASIC) said Equity Trustees oversaw the investment of about A$160 million in retirement savings into Shield across 2023 and 2024.
The fund had “no track record,” ASIC said, and thousands of members ultimately saw their balances reduced.
ASIC Deputy Chair Sarah Court said: “Instead of acting as an effective gatekeeper for its members’ retirement savings, ASIC alleges Equity Trustees allowed thousands of members invest to in Shield which had no track record. Those members ultimately saw their super balances eroded.”
She added that the case was part of ASIC’s broader efforts to safeguard superannuation savings: “Superannuation trustees play a critical role helping people save for their retirement. We expect them to do so with care and skill and put the interests of their members first.”
ASIC alleges that Equity Trustees failed to exercise the diligence expected of a prudent trustee, act in the best financial interests of members, and ensure financial services were provided “efficiently, honestly and fairly.”
Court noted the action was “the first action against a superannuation trustee in relation to this complex set of investigations,” warning that further cases were likely. ASIC is seeking declarations and civil penalties.
