Thousands of Aussies stung by the collapse of the Shield Master Fund will be repaid, Macquarie Bank has pledged.
Court papers released by ASIC on Thursday show Macquarie has admitted to breaking the Corporations Act over the collapsed superannuation scheme.
‘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,’ said ASIC deputy chair Sarah Court.
‘Many members thought their funds were safe when they used Macquarie’s super platform to invest in Shield, which had no track record.
‘ASIC’s investigation will see Macquarie return these members to the position they were in before their retirement savings were eroded.’
As superannuation trustee, Macquarie oversaw approximately $321million in super investments into Shield by around 3,000 of its members between 2022 and 2023, ASIC claimed.
The independent body said Macquarie admitted the allegations during proceedings in the Federal Court and that it remains a matter for the court to determine whether the declarations are appropriate.
Macquarie will make the repayments in full by September 30.
Macquarie Bank has promised thousands of Australians will be repaid after the collapse of the Shield Master Fund, ASIC has confirmed (stock image)
ASIC deputy chair Sarah Court (pictured) said many members thought their funds were safe when they used Macquarie’s super platform to invest in Shield
A Macquarie spokesperson confirmed the bank will facilitate the payment of 100 per cent of the net capital invested in Shield by those who invested through the Macquarie wrap platform.
‘The payment will eliminate the necessity for investors to wait for a likely complex multi-year process as Shield liquidators Alvarez & Marsal continue to pursue recovery of funds.
‘Macquarie’s decision to devote resources to achieve this outcome recognises Shield’s unique circumstances, notably the scale of the issue, its material impact on many investors and their limited access to recourse from the many different entities which played a role.
‘The approach of providing immediate certainty and an improved outcome for investors benefits all parties.’
Macquarie is due to buy the investors’ holdings in Shield at the value assessed during the liquidation process.
In addition, it will make a goodwill payment to investors, with the two payments equating to 100 per cent of the net capital each client originally invested in Shield.
More to come.
