The Albanese Government welcomes today's announcement by the Australian Securities and Investments Commission (ASIC) regarding its action against Macquarie Investment Management Ltd, which will see thousands of Australians receive 100 per cent of the net cash they invested in the Shield Master Fund.
Macquarie's admission is an important reminder to all platform providers of their obligations to protect customers.
While this action does not make up for stress that these investors endured or the foregone returns that these investors would have received, it will enable affected customers to access their retirement savings without the need for lengthy and costly court proceedings. Importantly, it does not limit their right to pursue further actions.
We recognise, however, that this remains a deeply distressing time for many investors in Shield and First Guardian who are not covered by this action. ASIC is continuing to explore all options to hold parties to account and ensure that investors, where possible, are remediated. Our thoughts are with those individuals and families who are still facing uncertainty and hardship.
As minister I am also engaging regularly with ASIC, my department, and with key industry stakeholder groups in order to better understand the drivers of conduct that have led to these collapses, and how we can work together with the sectors to implement sensible reforms that better protect consumers in the future.
Potential misconduct within two large funds is itself deeply troubling. But worse in this case is the simultaneous failure of multiple layers in the system.
We are seeing failings at every step of the value chain, including from lead generators, financial advisors, superannuation trustees, auditors, managed investment schemes and research houses.
Events like Shield and First Guardian are an important reminder for all Australians to be alert to high‑pressure sales tactics, including requests to make a decision on the spot, and 'click bait' online advertising.
